RBI Monetary Policy- Repo Rate Unchanged, FY 2022 GDP growth outlook retained at 10.5%

RBI Monetary Policy April 2021- The RBI Monetary policy committee on 7th April, Wednesday kept the repo rate (at which RBI lends short-term funds to the banks) unchanged at 4%. The reverse repo rate stands at 3.35 percent.

The RBI Governor Shaktikanta Das said that the central bank will remain accommodative as long as necessary to sustain growth on a durable basis.

RBI Monetary Policy April 2021

Here are the key updates of “RBI Monetary Policy April 2021”

🎯RTGS and NEFT facilities will be extended to digital payments intermediaries, beyond banks.

🎯Enhancing ways & means advance (WMA) limit to ₹ 47,010 crores, up 46% from the current limit of ₹ 32,225 crores: RBI Governor.

🎯Governor Das says that a body will be set up to review the functioning of Asset Reconstruction Companies (ARCs) and recommend measures.

🎯₹ 50,000 crores of lending support to be provided to Nabard, NHB, and Sidbi as fresh lending in 2021.

Also Read- List of Bank Holidays in April 2021: 9 Days Bank Holidays in April Month.

🎯 The TLTRO scheme is being extended by 6 months, up to September 30, 2021.

🎯 To purchase ₹ 1 lakh crore of G-secs under G-SAP in Q1: Das.

🎯 RBI Governor announces Secondary Market G-Sec Acquisition Programme 1.0; to purchase ₹ 25,000 crores of G-Secs on April 15 under G-SAP.

🎯 RBI will support the market with adequate liquidity via its various tool kits: Governor.

🎯 RBI is indirectly expanding liquidity. Have conducted liquidity for orderly market conditions: Das

🎯 CPI for FY22 is seen at 5.1%

🎯 Q1FY22 GDP growth outlook is 22.6 percent, and for Q2FY22 at 8.3 percent, said the governor.

🎯 GDP growth outlook for FY22 is maintained at 10.5 percent. The MPC had projected this estimate during the previous policy announcement.

🎯 The global economy is showing some recovery but the path remains uncertain, says Das.

🎯Rural demand remains resilient, urban demand gains traction and should pick up: Governor Das.

🎯RBI Governor Shaktikanta Das says vaccine distribution & its efficacy is key to global economic recovery.

🎯 MPC voted unanimously to leave the repo rate unchanged.

Also Read- 6 companies including Aadhar Housing Finance ready to launch their IPO in the month of April 2021

🎯 Marginal standing facility and bank rate kept unchanged at 4.25%.

🎯RBI keeps the repo rate unchanged at 4%, maintains an accommodative stance; the Reverse repo rate stands at 3.35%.

🎯 The maximum end-of-day balance for payment banks doubled to ₹ 2 lakh.

Join our Social Community

FacebookTwitterInstagram
LinkedInPinterestTelegram

Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

Feedback/Suggestion- Hope you all find it useful, please give your valuable feedback & let us know if there is an error. Thanks in Advance

Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

Spread the knowledge of Tax

Leave a Comment