2020The Indian Express [P] Ltd. All Rights ReservedRBI Monetary Policy Highlights Repo rate cut on hold Shaktikanta Das unveils liquidity stimulus measures The RBI MPC has unanimously voted to maintain the status quo on policy rates. - Regulatory and macro-prudential measures announced during the policy holds more importance than the rate decisionMPC’s committed towards prime objective of inflation targetingFund of Rs 5,000 crores to NABARD would act as a booster shotRBI says protracted spread of COVID-19 poses downside risk to economyRBI Governor Shaktikanta Das says headline inflation to remain elevated in Q2FY21RBI's relief measures for entities who are under severe stressAll the resources shall not be exhausted upfront in uncertain timesRestructuring will help many firms to deal with immediate working capital requirementsAvailing moratorium leads your loan becoming bigger due to unpaid interestRBI extends loan restructuring facility to companies; eases industry’s pain in tough timesMSME loan restructuring will help many companies that are still in distressFinancials, banks, realty stocks gain up to 9% after RBI MPC keeps policy rates unchanged; auto stocks fallCentral bank extends MSME debt restructuring till March 31 next yearRBI relaxation seeks to ensure that a viable promoter, solely impacted on account of Covid pandemic, can continue his entrepreneurshipBorrowers get additional line of credit available to ensure that working capital needs are specifically taken care ofPrevious reduction of 250 bps is achieving the expected outcomeFiscal measures by RBI have started showing the positive outcomesPossibility of another round of 25-50 bps rate cut over the next 6 monthsOne should book profit and take money home and wait for better entry price pointsLoan resolution window for stressed corporate and MSME is a positive stepAcceleration of credit growth remains precondition for economic recoveryRBI holding back some firepower for worse conditionsNo change in interest rate is not in line with expectations of India IncRBI's move will help NBFCs and housing finance companies to lend more money to homebuyers and generate demand back in marketWith low credit growth and rate cuts not resulting in credit transmission, realty sector remains in dismayNot cutting rates will maintain asset quality of stressed assetsRBI's today's move will give the housing sector a boost and benefit both developers and buyersCopyright ©
We expect benign rate scenario to remain conducive for bonds - Key provision of restructuring of loans to borrowers who were not in default on March 01 through recommendation of KV Kamath committee cannot have come sooner. We are confident that our country will emerge stronger from this crisis - Not cutting the rates any further will protect the returns of savers and will not push borrowers, including banks and NBFCs, to lend any further and help in maintaining asset quality in stressed sectors. When the bank receives the cheque from your beneficiary, it will verify the details uploaded by you.
A sentiment upswing will follow among developers and buyers alike given the infusion of additional liquidity to NABARD and National Housing Bank. In the current times, the regulatory and macro-prudential measures announced during the policy holds more importance than the rate decision.- The decision of ‘status quo’ stems from the fact that the near term inflation outlook remains uncertain owing to supply-side disruptions and cost-push factors and thus underscores MPC’s cautious stance and its commitment towards its prime objective of inflation targeting. RBI therefore expects elevated inflation readings for a few more months, although core inflation is soft. RBI Policy: The Reserve Bank of India's (RBI's) six-member Monetary Policy Committee (MPC), headed by the RBI Governor, had its 24th meeting …
- With the sword of IBC being taken away, the RBI relaxation seeks to ensure that a viable promoter, solely impacted on account of Covid pandemic, can continue his entrepreneurship and provide the path of resolving the financial distress within a 2 year sunset.
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