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    6 Bimonthly Monetary Policy: 06 FEBRUARY 2020 Dear & FD

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    Rishabh Agarwal
    The monetary policy committee decided to keep the repo rate unchanged at 5.15% due to elevated inflation and slowing growth. Key points: - GDP growth for 2019-20 is estimated at 5%, slowing further to 6% for 2020-21. - Inflation remains elevated in the short-run. - Fixed rate repo windows are being withdrawn and liquidity will be ensured by the RBI without quantitative limits near the policy rate. - Term repos of 1-3 years will be conducted up to Rs. 100,000 crore at the policy rate to ease refinancing in these tenors. - Scheduled banks can deduct incremental retail loans to sectors like auto, housing

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    6 Bimonthly Monetary Policy: 06 FEBRUARY 2020 Dear & FD

    Uploaded by

    Rishabh Agarwal
    21 views8 pages
    The monetary policy committee decided to keep the repo rate unchanged at 5.15% due to elevated inflation and slowing growth. Key points: - GDP growth for 2019-20 is estimated at 5%, slowing further to 6% for 2020-21. - Inflation remains elevated in the short-run. - Fixed rate repo windows are being withdrawn and liquidity will be ensured by the RBI without quantitative limits near the policy rate. - Term repos of 1-3 years will be conducted up to Rs. 100,000 crore at the policy rate to ease refinancing in these tenors. - Scheduled banks can deduct incremental retail loans to sectors like auto, housing

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    India economic survet

    Original Title

    economic survey india 2018-18

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    The monetary policy committee decided to keep the repo rate unchanged at 5.15% due to elevated inflation and slowing growth. Key points: - GDP growth for 2019-20 is estimated at 5%, slowing further to 6% for 2020-21. - Inflation remains elevated in the short-run. - Fixed rate repo windows are being withdrawn and liquidity will be ensured by the RBI without quantitative limits near the policy rate. - Term repos of 1-3 years will be conducted up to Rs. 100,000 crore at the policy rate to ease refinancing in these tenors. - Scheduled banks can deduct incremental retail loans to sectors like auto, housing

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views8 pages

    6 Bimonthly Monetary Policy: 06 FEBRUARY 2020 Dear & FD

    Uploaded by

    Rishabh Agarwal
    The monetary policy committee decided to keep the repo rate unchanged at 5.15% due to elevated inflation and slowing growth. Key points: - GDP growth for 2019-20 is estimated at 5%, slowing further to 6% for 2020-21. - Inflation remains elevated in the short-run. - Fixed rate repo windows are being withdrawn and liquidity will be ensured by the RBI without quantitative limits near the policy rate. - Term repos of 1-3 years will be conducted up to Rs. 100,000 crore at the policy rate to ease refinancing in these tenors. - Scheduled banks can deduct incremental retail loans to sectors like auto, housing

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    6TH BIMONTHLY

    MONETARY POLICY
    06 FEBRUARY 2020

    Presentation by : DEAR & FD


    5.5

    4
    6
    7
    8
    8.5

    4.5
    5
    6.5
    7.5
    1-Jan-14
    1-Apr-14
    1-Jul-14
    1-Oct-14
    1-Jan-15
    1-Apr-15
    1-Jul-15
    1-Oct-15
    1-Jan-16
    1-Apr-16
    1-Jul-16
    1-Oct-16
    1-Jan-17
    1-Apr-17
    1-Jul-17
    1-Oct-17
    1-Jan-18
    1-Apr-18
    Repo Rate(%)

    1-Jul-18
    Repo and Reverse Repo Rates

    1-Oct-18
    1-Jan-19
    Reverse Repo Rate (%)

    1-Apr-19
    1-Jul-19
    1-Oct-19
    1-Jan-20
    MSF 5.40%
    Repo 5.15%
    • No change in
    benchmark rates

    Reverse Repo 4.90%


    Global Slowdown
    GDP Growth Rate of India

    - 5% for 2019-20

    - 6% for 2020-21
    Inflation in India

    - inflation to remain
    elevated in short-run
    Statement on Developmental and Regulatory Policies
    Policy Changes Impact

    Fixed rate repo and four 14-day term repos every Short term liquidity to be cheaper
    fortnight are withdrawn. RBI to ensure adequate
    provision of liquidity without quantitative
    ceilings at or around the policy rate
    RBI to conduct term repos of one-year and three- Demand for refinance in these tenors may
    year tenors for up to a total amount of get impacted
    Rs.1,00,000 crore at the policy repo rate.
    Yields in these tenors to remain
    southwards, investment in these tenors to
    witness portfolio appreciation.

    Scheduled commercial banks will be allowed to Bank lending to increase in these sectors
    deduct the equivalent of incremental credit which creates scope for refinance. Niche’
    disbursed by them as retail loans for companies in these sectors will be targeted.
    automobiles, residential housing and loans to
    micro, small and medium enterprises (MSMEs)
    Statement on Developmental and Regulatory Policies
    Policy Changes Impact

    Extension of One-time Restructuring Scheme Could benefit certain companies having


    for MSME advances stressed assets.
    New companies may become eligible for
    NABARD refinance

    Guidelines on Projects under Implementation This may boost the chances of asset
    in Commercial Real Estate sector. resolution of housing and real estate
    Proposed Changes in Regulations Applicable to companies where we are having refinance
    Housing Finance Companies (HFCs) for Public and investment exposure
    Comments

    Regional Rural Banks - Permission for Digital Payments


    Merchant Acquiring Business
    THANK YOU

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