The Reserve Bank of India (RBI) on Friday announced a review of its credit policy. The RBI has not changed interest rates this time either. RBI Governor Shaktikant Das made the announcement at a press conference here on Friday. But the Reserve Bank has made a number of important announcements to enhance the convenience of the general public.
The RBI is looking at reducing the fiscal deficit. This is the reason why experts were already estimating that there would be no change in interest rates. At the same time, interest rates have already been slashed, but there was little hope this time around.
It may be mentioned that for the first time since the introduction of the General Budget 2021-22, the Reserve Bank has reviewed the credit policy. Let us know what are the key points of the announcement of the Reserve Bank Governor.
1 No change in interest rates
The RBI has not changed interest rates, meaning the repo rate will remain at 4 per cent and the reverse repo rate at 3.35 per cent.
2. Czech Transaction System (CTS) in all branches
The Reserve Bank said the check transaction system would be implemented in all branches of all banks. At present about 18 thousand branches do not have this facility.
3. Even small investors can open a gilt account
Shaktikant Das said that now even ordinary investors can open a gilt account with the Reserve Bank. Small lenders will now be able to invest in primary and secondary government bonds. This step will give small investors the opportunity to invest in the safest option of fixed income. It will give you the option to invest in a safe option in addition to the bank’s fixed deposit.
4. 24 hour helpline for digital payments
The RBI said that all payment system operators would have to start a 24 × 7 helpline to address any issues that people face in digital payment services.
5. One Country One Ombudsman
The RBI governor said there are currently three separate ombudsmen for banks, NBFCs and non-bank prepaid payment issuers (PPIs). For this, the Reserve Bank has set up about 22 Lokpal offices. For this, an attempt will be made to create a system of ‘One Country One Lokpal’ rather than uniting everyone.
6. The economy will run in double digits
The Reserve Bank has projected a GDP growth of 10.5 per cent in the next financial year 2021-22. The RBI said the economy would gain momentum with the launch of the covid vaccination campaign. The index of manufacturing, services and composite purchasing managers is improving, the RBI said. The environment for development has improved a lot. So the MPC is focused on supporting growth this time around.
7. Inflation will rise
The Reserve Bank said retail inflation was below the comfortable level of 6 per cent. The Reserve Bank has raised its retail inflation forecast for the first six months of FY 2021-22 from 5 per cent to 5.2 per cent. Earlier it was 4.6 to 5.2 per cent.
8. Improvement in real estate
The RBI governor said that while house sales have gradually improved, people’s spending capacity is also improving again. The general budget has been presented recently, the investment situation is expected to improve.
9. CRR will increase
The Reserve Bank said there was no change in the cash reserve ratio (CRR), but it would be increased to 4 per cent in the next two phases. It will be 3.5 per cent by March 27 and 4 per cent by May 22.
Shaktikant Das said an expert committee would be formed to strengthen the co-operative banks which would suggest how to strengthen the sector and what legal changes are required for this.