RBI Announces USD/INR Sell Buy Swaps
RBI on Thursday (12.03.2020) announced that it has been decided to undertake 6-month US Dollar sell/buy swaps to provide liquidity to the foreign exchange market in multiple tranches. The first tranch would be offered on March 16, 2020, for swap amount USD 2 Billion “On emerging Financial markets worldwide are facing intense selling pressures on…
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RBI announces Scheme of Reconstruction for YES bank
The Yes Bank Ltd. was placed under an order of moratorium on March 5, 2020 which will be effective up to April 3, 2020.In this regard, RBI published a draft scheme of reconstruction of the Yes Bank Ltd.in public domain inviting suggestions and comments from the public as well as all the stake holders of…
Read article RBI revises its liquidity management framework: LTRO introduced in place of 14 days fixed term repo
As announced in the Statement on Developmental and Regulatory Policies of February 6, 2020, the Reserve Bank of India has decided to revise its liquidity management through which it controls cash in the banking system to rationalise interest rates in line with the policy actions. Instruments of liquidity management will include “fixed and variable rate…
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RBI offers CRR exemption to banks for incentivising specific sectors
In terms of Statement on Developmental and Regulatory Policies of February 6, 2020, the Reserve Bank of India announced that the special lending window with CRR exemption will be open from February 14 and incremental loans disbursed under this facility will have CRR exemption for the next five years. Accordingly, banks are allowed to deduct…
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RBI conducts Financial Literacy Week from February 10 to February 14, 2020
Many surveys on the status of financial literacy in India reveal that about a staggering 76% of Indian adults do not understand basic financial concepts. These surveys confirm the financial literacy rate in India has been consistently poor as compared to the rest of the world. Financial Literacy Week is an initiative by RBI to…
Sixth bimonthly statement: RBI keeps Repo Rate unchanged
In the sixth bi-monthly monetary policy statement announced on Thursday (dated 06.02.2020), MPC decided to keep the policy REPO rate under the liquidity adjustment facility (LAF) unchanged at 5.15 percent. The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth while ensuring that inflation remains within…
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