- RBI Leaves Repo Rate unchanged at 4%.
- Reverse repo rate remains unchanged at 3.35%.
- Maintained an accommodative stance.
- Real GDP Growth is projected at 10.5% in 2021-2022.
- CRR will be raised to 3.5% effective from March 27 and will further to 4% effective May 22,2021.
- CPI inflation is projected at 5.2% for Q4FY21 , 5.2- 5% in the H1FY22 and at 4.3% in the Q3FY22
- The 10-year benchmark yield rose 7 basis points to 6.14%.
- Direct access to retail investors to G-Sec both in primary and Secondary markets.
- Resident individuals can make remittance to IFSCs for NRIS.
- Retail investors can open Gilt accounts with RBI.
- The HTM limits will be restored to 19.5% in a phased manner starting from Apr-Jun 2023.
- Gross market borrowing of Centre is estimated at Rs 12 lakh crore.
- Reserve money rose by 14.5% year on year on Jan. 29 led by currency demand; Money supply grew by 12.5% on Jan. 15.
- RBI Includes NBFCs In TLTRO Scheme.
- MSF relief facility for banks to be available for another 6 months till September.
- MSF relief provides increased access to funds to the extent of Rs 1.53 lakh crore.
“Going forward the Indian economy is poised to move in only one direction which is upwards. It is our strong conviction backed by forecasts, that in FY22 we will undo the damage that Covid-19 has inflicated the economy. After the chaos and dispair of the year gone by through which we have sailed together, we shall continue to sail ahead.” Said Governer Shaktikanta Das.
India’s Monetary Policy Committee kept its key policy rate unchanged even as inflation fell to within its comfort band. Slow down in Inflation to be Sharp fall in vegetable prices and bumper kharif crop, rising prospects of a good rabi harvest, larger winter arrivals of key vegetables and softer egg and poultry demand on avian flu fears are likely to help keep inflation benign. Direct Participation of Retail investors in G-sec will promote liquidity in the system and will discourage investments in fixed deposits product of Banks as people can directly invest their money in G-secs that offer similar or even better returns sometimes.
DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014
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