top of page
  • Writer's pictureRoyzz & Co

RBI Monetary Policy Updates

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has announced the outcome of its monetary policy review, in its first policy announcement of FY22. The benchmark repo rate has been maintained at 4 percent, as has the reverse repo rate at 3.5 percent. The MPC also judged that the monetary policy should remain accommodative to support and nurture the recovery after the lockdowns. VRRR auctions of longer maturity will be conducted as indicated in the Revised Liquidity Management framework that was announced in February. The amount and tenor of these auctions are to be decided based on the evolving liquidity and financial conditions


The MPC also decided to put in place a secondary market G-sec acquisition programme or G-SAP 1.0 for the financial year, wherein the RBI commits to a specific amount of open market purchases of government securities. For Q1 of 2021-22, therefore, it has been decided to announce a G-SAP of ₹1 lakh crore. The TLTRO on Tap Scheme which was made available up to March 31, 2021, has been extended up to September 30, 2021. Liquidity support of ₹50,000 crore for fresh lending during 2021-22 will be provided to All India Financial Institutions. The dispensation to NBFCs (other than MFIs) for on-lending to Agriculture, MSME, and Housing to be classified as Priority Sector lending (PSL) has been further extended up to September 30, 2021.


It has been proposed that direct membership to the RBI-operated Centralised Payment Systems (CPSs) – RTGS and NEFT – be extended to enable non-bank payment system operators like Prepaid Payment Instrument (PPI) issuers, card networks, White label ATM operators and Trade Receivables Discounting System (TReDS) platforms regulated by the Reserve Bank. Interoperability has been proposed to be made mandatory for full-KYC PPIs and for all payment acceptance infrastructure. To incentivise the migration of PPIs to full-KYC, the current limit on outstanding balance in such PPIs has been proposed to be increased from ₹1 lakh to ₹2 lakh. It has been decided to permit the parking of unutilised External Commercial Borrowing proceeds drawn down on or before March 1, 2020 in term deposits with AD Category-I banks in India prospectively up to March 1, 2022.

Recent Posts

See All

RBI directs transition from LIBOR

The Reserve Bank of India (RBI) has directed banks to transition from the London Interbank Offered Rate (LIBOR). The regulator has...

Comentários

Não foi possível carregar comentários
Parece que houve um problema técnico. Tente reconectar ou atualizar a página.
bottom of page