Expect faster transmission of rate cuts by banks: RBI governor
NEW DELHI: After delivering three cuts in support rates, the Reserve Bank said on Monday that it expects a faster transmission of interest rate cuts by banks to consumers through loans for homes, cars and cheaper personal During this year, the RBI reduced the key policy rate three times with an aggregate reduction of 0.75 percentage points in the repurchase rate, the rate at which the RBI lends to banks.
At the last meeting of the MPC (June 6), he had already said that by that time 50 basic points of repurchase cutting rate They had been announced, and of these 21 basis points had been transmitted. And one positive thing that is happening now is that before it used to take six months for transmission, now the transmission is taking a much shorter period of 2 to 3 months, said the RBI governor. Shaktikanta Das He said.
From then on, we announced a cut of 25 basis points. Therefore, now it is a cut of 75 basis points. We are collecting data and we must also take into account that since June, in fact, on June 1, the system is more adequate surplus in liquidity, he said when addressing the media after the usual post-budget meeting with the finance minister Nirmala Sitharaman .
In addition, he said that, in general, the liquidity of the system has a large surplus and, if the individual banks have liquidity problems, the RBI will provide them with liquidity support.
The Budget has announced a 10 percent endorsement for banks to implement the NBFC package as part of a series of steps to provide relief to non-bank financial companies facing a cash crisis following the collapse of ILu0026FS last year.
RBI to discuss issuance of sovereign bonds with government: Shaktikanta Das Reserve Bank governor Shaktikanta Das on Monday said the central bank will discuss issuance of overseas sovereign bonds with the government. After the customary post-budget meeting with Finance Minister Nirmala Sitharaman, I have said the system has sufficient liquidity and the Budget for 2019-20 has made provision for shadow banking (NBFC) sector.
In an attempt to address stress in the sector, the government in the Budget proposed that public sector banks would buy financially sound NBFC rated assets for a total of Rs 1 lakh crore during the current financial year.
For this, the government will grant a six-month partial credit guarantee to public sector banks for the first loss of up to 10 percent.
Regarding the shadow banking sector, the governor said that the RBI is monitoring NBFCs based on their size and based on their previous payment behavior.
We are monitoring your operations very closely and at regular intervals, he added.
On the impact on the rise in fuel prices on inflation, Das said it will take time for the transmission to occur.
the Monetary Policy Committee It will meet in the first week of August and will evaluate this, he said, adding that there could be a marginal increase, but it is not that, the next day, it affects inflation. It takes time for the transmission.
Tras el aumento en the impuestos al combustible anunciado por el gobierno en el Presupuesto para 2019-2020, the precios de la gasolina y el diesel aumentaron en al menos 2.4 rupias y 2.36 litros por litro, respectivamente, en las ciudades metropolitanas.
the prices increased after the finance Minister High special tax and road and infrastructure tax for Rs 2 per liter in both fuels.
Cuando se le preguntó sobre el movimiento del gobierno para infundir Rs 70,000 millones de rupias en the PSB, Das dijo que es un desarrollo muy positivo porque no solo permite a the bancos mantener el capital que necesitan para cumplir con the requisitos regulatorios.
También le dará suficiente capital a the bancos para acelerar sus préstamos y desembolsos de crédito y para que el sistema bancario sea un buen auger, agregó.