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Shaktikanta Das Appointed Principal Secretary-2 for PM Modi After Serving as RBI Governor

February 22, 2025, 7:31 pm

Former RBI Governor Shaktikanta Das has been appointed as Principal Secretary-2 to Prime Minister Narendra Modi, according to a notification by the Appointments Committee of the Cabinet (ACC) on February 22. His tenure will be “co-terminus with the term of the Prime Minister or until further orders, whichever is earlier.”

P K Mishra, who is a retired Gujarat cadre IAS officer, is presently the Principal Secretary to the Prime Minister. Das is a retired IAS officer from the Tamil Nadu cadre and has more than 42 years of illustrious civil service, including experience in the areas of finance, taxation, investment, and infrastructure.

The said order reads: “The Appointments Committee of the Cabinet has approved the appointment of Shri Shaktikanta Das, IAS (Retired), as Principal Secretary-2 to Prime Minister with effect from the date he takes charge. His appointment will be co-terminus with the term of the Prime Minister or until further orders, whichever is earlier.”

Das was the 25th Governor of the RBI and made important contributions during India’s economic rebound, including during the COVID-19 pandemic. He was also India’s G20 Sherpa and a member of the 15th Finance Commission. Since becoming the RBI Governor in 2019, Das has overseen pivotal financial reforms, including constituting a panel under former RBI governor Bimal Jalan to examine the economic capital framework of the central bank, which had the effect of boosting the surplus transfer of RBI to the Centre.

Shaktikanta Das Bids Emotional Farewell As RBI Governor, Shares Message To PM Modi | WATCH

December 10, 2024, 2:00 pm

Shaktikanta Das is the 25th Governor of Reserve Bank of India (RBI). Today, he is leaving RBI as he is going to retire from his position. Sanjay Malhotra was appointed as the new RBI Governor. He thanked everybody for supporting him during the tenure and thanked the government for giving him an opportunity to serve the nation.

In a social media post on X, Das said, “Will demit office as Governor RBI later today. Thank you everyone for your support and good wishes. Immensely grateful to the Hon‘ble PM @narendramodi for giving me this opportunity to serve the country as Governor RBI and for his guidance and encouragement. Benefited a lot from his ideas and thoughts.”

Acknowledging Support from Key Figures

The Prime Minister extended his heartfelt thanks to the key government figures, including Finance Minister Nirmala Sitharaman, for her unwavering support. “Heartfelt thanks to Hon‘ble FM @nsitharaman for her constant support and backing. The fiscal-monetary coordination was at its best and helped us to deal with the multiple challenges during the last six years,” he wrote.

WATCH THE VIRAL VIDEO:

VIDEO | “Team work in the Reserve Bank (of India) was perhaps, in my experience, at a very high level. I got excellent cooperation from each and every member of my RBI team, each of my colleagues did their best during the trying times of Covid. My journey as the Governor of the… pic.twitter.com/tNVlEUqbGK

— Press Trust of India (@PTI_News) December 10, 2024

Das also thanked all the stakeholders of the financial sector, economists, industry bodies, and organisations in all the sectors, including agriculture and services, for their valuable inputs and policy suggestions. It was a team effort at the RBI. This statement has concluded with a thank-you from him to the RBI team with full recognition of their collective contribution. He stated, “A BIG thank you to the entire Team RBI.

Together we steered through an exceptionally testing time of unprecedented global shocks. May the RBI rise even taller as an institution of trust and credibility. My best wishes to one and all,” he wished in closing.

Managing Global Shocks and Economic Challenges

Das took over as RBI Governor on December 12, 2018, after the sudden resignation of Urjit Patel. His most significant challenge was presented when the COVID-19 pandemic hit the world just a year after his appointment and affected economies across the globe. In response to the economic impact, Shaktikanta Das led the RBI in reducing the policy repo rate to a record low of 4% and kept interest rates low for nearly two years to support the economy during the pandemic-induced lockdowns.

As the economy began to recover, Das and the Monetary Policy Committee (MPC) raised interest rates starting in May 2022 to curb inflation and manage economic overheating, a move that reflected his adaptability to the changing economic landscape.

A Resilient Leadership in Economic Growth

His six-year tenure saw India’s economic growth at over 7% for the last four years under his leadership. His tenure was one where, unlike his predecessors, who were characterised by central bank and the Ministry of Finance’s battles, his alignment with the government’s vision for RBI’s role remained consistent throughout.

During his tenure, Shaktikanta Das also saw the highest ever dividend payout by the RBI to the government, amounting to Rs 2.11 lakh crore earlier this year, showing the strong financial position of the central bank under his leadership.

Shaktikanta Das: A Career of Service and Expertise

Before becoming RBI Governor, Das had a stellar career as an IAS officer. A postgraduate from Delhi University‘s St Stephen‘s College, he was part of the 1980 batch of the Indian Administrative Service. He has held various important positions including Secretary to the Department of Economic Affairs and the Department of Revenue. After retirement, Das has been a member of the 15th Finance Commission and has served as India‘s G20 Sherpa.

With more than 38 years of governance experience, Shaktikanta Das worked across finance, taxation, industry, and infrastructure, leaving behind a legacy marked by resilience and robust leadership.

As Shaktikanta Das steps down, his tenure as RBI Governor will be remembered for navigating India through unprecedented global challenges, ensuring economic stability, and leading with a vision for growth. His departure marks the end of an era for the central bank, leaving behind a legacy oof trust, credibility, and impactful leadership.

RBI Governor Shaktikanta Das Hospitalized for Acid Reflux; Understanding it’s Symptoms, Risks, and Prevention Tips

November 26, 2024, 5:38 pm

RBI Governor Shaktikanta Das was admitted to a hospital in Chennai after experiencing severe acidity. According to an RBI spokesperson, “He is now doing fine and will be discharged in the next 2-3 hours.” The spokesperson assured that there is no cause for concern.

What is Acid Reflux?

Acid reflux occurs when stomach acid flows backward into the esophagus and throat. This backward movement can cause irritation and inflammation in the esophageal lining, leading to discomfort. Common symptoms include indigestion, heartburn, chest pain, nausea, and a burning sensation in the stomach or throat after eating.

Also Read: RBI Governor Shaktikanta Das Admitted to Hospital

Is Acid Reflux Dangerous?

Though occasional acid reflux episodes are usually harmless, frequent acid reflux, or gastroesophageal reflux disease (GERD), can cause serious complications if untreated.

Potential complications include:

Esophageal Ulcers
Chronic exposure to stomach acid can erode the esophageal lining, leading to painful ulcers. Symptoms include chest pain, heartburn, nausea, and pain during swallowing. Untreated ulcers may result in esophageal perforation or bleeding.
Esophageal Stricture
GERD-related inflammation can lead to scarring, causing the esophagus to narrow (a condition known as esophageal stricture). This makes swallowing difficult and may lead to choking or breathlessness.
Aspiration Pneumonia
Repeated inhalation of stomach acid into the lungs can cause aspiration pneumonia, a severe lung infection. Symptoms include chest pain, fever, coughing, breathlessness, wheezing, and fatigue. If left untreated, it can be life-threatening.
Esophageal Cancer
GERD increases the risk of adenocarcinoma, a type of esophageal cancer affecting the lower esophagus. Symptoms include difficulty swallowing, severe heartburn, chest pain, weight loss, and cough. Early detection is rare, as symptoms usually appear in advanced stages.

Preventing Acid Reflux

Doctors recommend the following measures to reduce acid reflux and prevent complications:

Avoid Trigger Foods: Limit fried, greasy, spicy, or fatty foods.
Adopt Healthy Eating Habits: Avoid overeating or lying down immediately after meals. Allow time for digestion.
Manage Weight: Excess weight, especially around the abdomen, can push the stomach upward, increasing acid reflux risks.
Reduce Alcohol and Caffeine: Excessive intake of both can aggravate acid reflux.
Quit Smoking: Smoking impairs the esophageal sphincter’s ability to close, allowing acid to rise.
Wear Loose Clothing: Tight-fitting clothes can increase abdominal pressure, pushing stomach contents upward.

Making these lifestyle changes can help control acid reflux and reduce the risk of severe complications.

RBI Governor Shaktikanta Das Earns ‘A+’ Rating In Global Finance Report 2024

August 20, 2024, 9:53 pm

Reserve Bank of India (RBI) Governor Shaktikanta Das has once again received an ‘A+’ rating in the Global Finance Central Banker Report Cards for 2024. This marks the second consecutive year that Governor Das has been recognized with this top rating, reflecting his continued success in steering India’s monetary policy.

Global Recognition for Top Central Bankers

The announcement was made in a press release by Global Finance Magazine on Monday, August 19. The magazine’s annual report, which grades central bank governors from around the world, highlighted those who excelled in managing inflation, economic growth, currency stability, and interest rate policies.

Since its inception in 1994, the Global Finance report has been a benchmark for assessing the performance of central bank governors across nearly 100 countries, territories, and districts. The grading scale ranges from “A+” to “F”, with the top ratings reserved for those who have demonstrated outstanding leadership and effective policy implementation.

Das Among the Top Performers

Shaktikanta Das was one of only three central bank governors to receive an ‘A+’ rating this year, alongside Christian Kettel Thomsen of Denmark and Thomas Jordan of Switzerland. This recognition underscores his effective management of India’s monetary policy amidst global economic challenges.

Global Finance’s Statement on Central Bankers

Joseph Giarraputo, founder and editorial director of Global Finance, acknowledged the challenges faced by central bankers in recent years, particularly in combating inflation through higher interest rates. He emphasized that the results of these efforts are now visible as inflation rates have dropped significantly across various countries.

“Global Finance’s annual Central Banker Report Cards honor those bank leaders whose strategies outperformed their peers through originality, creativity, and tenacity,” said Giarraputo.

Other High-Rated Governors

In addition to the ‘A+’ recipients, several other central bank governors were recognized with ‘A’ and ‘A-’ ratings. Governors who earned an ‘A’ rating include Roberto Campos Neto of Brazil, Rosanna Costa of Chile, Harvesh Kumar Seegolam of Mauritius, Abdellatif Jouahri of Morocco, Lesetja Kganyago of South Africa, Nandalal Weerasinghe of Sri Lanka, and Nguyen Thi Hong of Vietnam.

Those who received an ‘A-’ rating include Chea Serey of Cambodia, Tiff Macklem of Canada, and Jerome Hayden Powell of the United States, among others.

About Global Finance

Global Finance Magazine, founded in 1987, is a leading publication with a circulation of 50,000 and a readership spanning 193 countries and territories. The magazine is renowned for its in-depth coverage of the financial sector and its annual assessments of central bank governors, which have become a respected industry standard.

Governor Shaktikanta Das’s repeated recognition with an ‘A+’ rating highlights his continued leadership and the effectiveness of India’s monetary policies under his guidance.

RBI Introduces New Feature In UPI Lite- Check How It Works

June 7, 2024, 2:08 pm

The Reserve Bank of India (RBI) has recently announced the integration of UPI Lite with the e-mandate framework. Thus, helping in the auto replenishment of UPI lite balance, said RBI Governor Shaktikanta Das.

This feature aims to improve the ease of conducting small-value digital transactions.

While, addressing the MPC meeting, RBI Governor said, ‘The UPI Lite facility currently allows a customer to load his UPI Lite wallet upto ₹2000 and make payments up to ₹500 from the wallet. In order to enable the customers to use the UPI Lite seamlessly, and brd on the feedback received from various stakeholders, it is proposed to bring UPI Lite within the ambit of the e-mandate framework by introducing an auto-replenishment facility for loading the UPI Lite wallet by the customer, if the balance goes below a threshold amount set by him/her. Since the funds remain with the customer (funds move from his/her account to wallet), the requirement of additional authentication or pre-debit notification is proposed to be dispensed with’.

Later, he further added, that in order to encourage the wider use of UPI Lite, it aims to bring this feature under e-mandate framework, where customers can top up their UPI Lite wallets automatically if the balance falls beneath the threshold limit set by them.

Thus, enhancing the ‘ease of making small value digital payments’.

Brief On UPI Lite

UPI-Lite refers to an on-device wallet service launched in September 2022, which facilitates quick and seamless small-value payments up to ₹200 through the BHIM app.

LS Polls 2024: RBI Governor Shaktikanta Das Casts His Vote In Mumbai

May 20, 2024, 11:38 am

RBI Governor Shaktikanta Das casts his vote along with his family in the current fifth phase of the election.

The governor came to vote at the polling booth at Activity School, Peddar Road, Mumbai.

After coming out of vote, the RBI Governor declared, that its proud moment for 140 crore people, as they get to participate in this civic duty. He also praised the smoothness of this electoral process saying

“The process of voting today was very smooth, and I would like to congratulate the Election Commission of India and all the officials who have been working throughout the country.”

Later, he also encouraged people to come out to vote as this is a right, granted in parliamentary democracy.

Watch Here:-

#WATCH | Mumbai: After casting his vote, RBI Governor Shaktikanta Das says, “It’s a very proud moment for every Indian. It’s a moment of pride to participate in an election of 140 crore people. The process of voting today was very smooth and I would like to congratulate the… pic.twitter.com/JGUifocSvP

— ANI (@ANI) May 20, 2024

While appealing to voters he said “It is really a pride moment for every Indian to vote in these elections. I appeal to every voter to come out and vote.”

Later, Union minister and BJP Candidate of Mumbai North Lok Sabha seat Piyush Goyal also casted his vote at polling booth in Mumbai.

After Giving his vote Piyush Goyal said

“This election has given me the opportunity to meet several people and take their blessings. Being a Mumbaikar, the way people have hosted me is a wonderful feeling…My family members have come from abroad to exercise their right to vote.”

Meanwhile, polling is ongoing at 13 out of 48 Lok Sabha seats in Maharashtra including six in Mumbai.

In this state, 2.46 crore people are eligible to vote. As for BJP, Union ministers Piyush Goyal, Bharati Pawar and Kapil Patil are key candidates of the party.

Besides, BJP has also fielded other candidates like lawyer Ujjwal Nikam.

However, Election Commission of India has recently announced, that there exists a voter apathy in cities like Mumbai, Thane and Lucknow. It has earlier requested people to come out in vote in huge numbers.

RBI maintains repo rates same at 6.5 pc after first Monetary Policy meeting

April 5, 2024, 11:36 am

The Reserve Bank of India’s Monetary Policy Committee (MPC) has opted to maintain the policy repo rate at 6.5 per cent, citing retail inflation persisting above its target of 4 per cent.

This marks the seventh consecutive meeting where the MPC has opted for a status quo on the repo rate, which is the interest rate at which banks obtain funds from the RBI to address short-term liquidity mismatches.

RBI Governor Shaktikanta Das announced this decision, noting it as the first monetary policy statement of the current financial year 2024-25. “It was decided by a majority of 5:1 to keep the interest rate unchanged at 6.50 per cent. Consequently, the Standing Deposit Facility (SDF) rate remains at 6.25 per cent. Marginal Standing Facility (MSF) rate and the bank remain at 6.75 per cent,” said Das.

The MPC had retained the status quo on policy rates and stance during its last review held in February 2024. Additionally, RBI has maintained the stance of ‘withdrawal of accommodation’.

Furthermore, concerns arise from the India Meteorological Department’s (IMD) recent announcement of above-normal temperatures during April-June, potentially impacting the prices of vegetables, fruits, and other perishable items. “The tight demand-supply situation in certain categories of pulses and the production outcome of key vegetables warrant close monitoring, especially in the background of the forecast of above-normal temperatures in the coming months,” noted RBI Governor Shaktikanta Das.

Looking ahead, Governor Das expressed optimism regarding the outlook for agriculture and rural activity, anticipating a strengthening of rural demand and an improvement in employment conditions, which is expected to bolster private consumption.

The MPC, constituted under the Reserve Bank of India Act, 1934, consists of six members, including three from the RBI, including Governor Shaktikanta Das, and three members appointed by the Central government. The three-day review meeting of the MPC that commenced on April 2 concluded recently.

Governor Das highlighted that growth has sustained its momentum, surpassing all projections, and headline inflation has eased to 5.1 per cent during both January and February.

RBI Governor Shaktikanta Das set to hold meeting; Central Bank likely to keep rates steady

April 5, 2024, 9:50 am

Reserve Bank of India Governor Shaktikanta Das is set to disclose the outcome of the initial Monetary Policy Committee (MPC) gathering of the financial year 2024-2025 on Friday.

The Indian central banking authority has maintained the repo rate unchanged over the past six consecutive MPC sessions, and experts anticipate a continuation of the status quo on interest rates this time as well. The repo rate, which stands as the interest rate at which banks access funds from the RBI to address short-term liquidity gaps, remains pivotal.

Established under the Reserve Bank of India Act, 1934, the Monetary Policy Committee comprises six members, with three members hailing from the RBI, including Governor Shaktikanta Das, and three members appointed by the Central government.

The two-day review session of the MPC, which commenced on April 3, concludes today.

In the last review held in February 2024, the RBI opted to maintain the status quo on policy rates and stances. However, the decision wasn’t unanimous, as one member recommended a 25 basis point rate cut and a shift in policy stance to neutral.

Following the previous policy review, rating agencies have revised India’s growth forecast upwards. Finance Minister Nirmala Sitharaman recently expressed confidence that India’s growth will exceed 8 per cent in FY24.

Inflation has shown a downward trend and has remained within the comfort zone. Consumer Price Index inflation stood at 5.1 per cent in February 2024, down from over 5.5 per cent in December 2023. Core CPI inflation, excluding food and beverages, hit a low of 3.5 per cent in February 2024. While food inflation above 7 per cent has raised concerns, recent reductions in the prices of petrol, diesel, and LPG are expected to further decrease it in March, potentially falling below 5 per cent.

The India Meteorological Department’s recent announcement of above-normal temperatures during April-June may raise concerns about the rise in prices of vegetables, fruits, and other perishable items. Additionally, the increasing prices of rice and pulses may be a point of concern for the MPC during decision-making. However, the softening prices of non-food items may provide some relief to the committee.

Typically, normal monsoons follow above-normal temperatures, implying that the average CPI inflation is likely to remain within the RBI’s comfort zone of 4-6 per cent in FY25.

According to official data, retail inflation in India slightly eased in February to 5.09 per cent from 5.10 per cent the previous month, primarily due to deceleration in prices across all categories except food.

Experts opine that the RBI is improbable to alter its policy stance before the August 2024 MPC review, and any rate cut is unlikely before that. The recent indication by the US Fed that it isn’t rushing to cut rates also suggests that the RBI is unlikely to opt for a rate cut before the October 2024 policy.

The upcoming MPC meetings of the RBI are scheduled for June, August, October, December, and February 2025.

“RBI’s evolution closely intertwined with development of Indian economy”, says RBI Governor Shaktikanta Das

April 1, 2024, 1:57 pm

Reserve Bank of India (RBI) Governor Shaktikanta Das reflected on the rich history of the central bank spanning nine decades, during the commemoration ceremony marking 90 years of the RBI held in Mumbai on Monday.

In his address, Governor Das highlighted the pivotal role played by the institution in India’s economic advancement and its ability to adapt to changing circumstances. He stated, “The journey of reserve bank over the 9 decades has been one of efficient functioning and contribution to the nations’ progress.”

Governor Das emphasized the transition of the RBI from its initial role as a central bank focused on resource allocation during the planning era to its current position as a supporter of the market economy. He stressed the importance of structural reforms in enabling the RBI to address contemporary challenges, citing initiatives like the Insolvency and Bankruptcy Code and flexible inflation targeting.

He remarked, “The RBI’s evolution as an institution has been closely intertwined with the development of the Indian economy. From being a central bank primarily concerned with the allocation of scarce resources during the planning period, the RBI has transitioned into being an enabler for the market economy.” He added, “The path-breaking structural reforms such as the enactment of the Insolvency and Bankruptcy Code and the adoption of flexible inflation targeting in recent years have helped us to deal with the challenges in the banking system and the task of maintaining price stability more effectively.”

Governor Das also acknowledged the challenges posed by the COVID-19 pandemic and geopolitical tensions, commending the resilience of the Indian economy. He attributed this resilience to the well-coordinated monetary and fiscal policies implemented by the country, which helped shield the economy from external shocks and foster a robust recovery.

He concluded on an optimistic note, highlighting India’s strong GDP growth, declining inflation, stable financial sector, resilient external sector, and record-high forex reserves. He reaffirmed the RBI’s commitment to monitoring emerging trends and implementing necessary policy measures to ensure alignment with the evolving economic landscape.

RBI expands obligation for Key Fact Statement for all retail, MSME loans

February 8, 2024, 12:39 pm

The Reserve Bank of India (RBI) has expanded the obligation for a Key Fact Statement (KFS) to encompass all retail and MSME loans, aiming to improve transparency in the lending sector.

The KFS serves as a document elucidating lending terms, offering key information on a loan agreement, including the comprehensive cost of the loan in a clear and comprehensible format.

Currently, loans to borrowers encompass various fees and charges, such as processing fees and documentation charges. Governor Shaktikanta Das highlighted the need for transparency in disclosing such details, emphasizing the extension of the KFS requirement to cover all retail and MSME loans.

This move intends to enhance transparency and empower borrowers to make well-informed decisions. The decision aligns with the Monetary Policy Committee’s unanimous choice to maintain the policy repo rate at 6.5 percent during its February review meeting, marking the sixth consecutive status quo.

The repo rate signifies the interest rate at which the RBI lends to other banks. Governor Das affirmed that the MPC, with a majority of 5 out of 6 members, prioritizes the withdrawal of accommodation to ensure progressive alignment of inflation with the target while supporting economic growth.

The RBI’s bi-monthly monetary policy committee meeting, held over three days, typically involves deliberations on interest rates, money supply, inflation outlook, and various macroeconomic indicators.

RBI leaves repo rate unchanged for sixth straight occassions

February 8, 2024, 10:58 am

In its February review meeting, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) unanimously opted to maintain the policy repo rate at 6.5 percent, marking the sixth consecutive instance of maintaining the status quo.

The repo rate, representing the interest rate at which the RBI lends to other banks, remains unchanged. RBI Governor Shaktikanta Das, discussing the policy statement after the three-day review meeting, attributed the decision to the comfortable inflation levels and resilient growth dynamics.

Governor Das highlighted that inflation is nearing the target, and economic growth is holding up better than anticipated. Despite being within the RBI’s comfort range of 2-6 percent, retail inflation in India stood at 5.69 percent in December, slightly above the ideal 4 percent scenario.

The MPC, with a majority of 5 out of 6 members, decided to concentrate on withdrawing accommodation to ensure a progressive alignment of inflation with the target while supporting economic growth.

The Indian economy exhibited robust growth, registering a 7.6 percent expansion during the July-September quarter of the fiscal year 2023-24, maintaining its status as the fastest-growing major economy. In the April-June quarter, India’s GDP growth reached 7.8 percent.

The three-day bi-monthly meeting of the RBI’s Monetary Policy Committee, where interest rates, money supply, inflation outlook, and various macroeconomic indicators are deliberated, concluded after a thorough review.

A notable decline in inflation, with the potential for further decrease, likely influenced the central bank’s decision to keep the key interest rate unchanged. Despite concerns about inflation in many countries, including advanced economies, India has effectively managed its inflation trajectory.

Except for the recent pauses, the RBI had increased the repo rate by a cumulative 250 basis points to 6.5 percent since May 2022 in its efforts to combat inflation. Raising interest rates is a monetary policy tool that typically curbs demand in the economy, contributing to a decline in the inflation rate.

Banks, NBFCs should stress test their books, suggests RBI Governor

November 22, 2023, 2:05 pm

Governor of the Reserve Bank of India Shaktikanta Das urged banks and non-banking financial companies (NBFCs), among other financial institutions, to keep stress testing their books on Wednesday. The comments made today closely followed the RBI’s announcement last week that it was raising the risk weight for banks’ and non-banking financial companies’ exposure to consumer credit. This was ostensibly done to slow the rapid expansion of unsecured consumer lending.

Shaktikanta Das, while delving into various facets on the Indian banking sector as part of his address at the ‘FIBAC 2023 Conference’ organised jointly by industry body FICCI and the Indian Banks’ Association (IBA), noted that the Indian banking system continues to be resilient, backed by improved capital ratios, asset quality and robust earnings growth.
The financial indicators of non-banking financial companies (NBFCs) are also in line with that of the banking system as per the latest available data, Das remarked.

In light of this, he advised the financial institutions that it was time to improve their risk management procedures and add more safety nets in case the business cycle took a turn for the worse. “Prudential measures in the overall interest of sustainability,” was how he described the most recent increase in the risk weight move. These were preventative measures, he continued.

RBI revises inflation outlook for 2023-24 and anticipates “substantial increase” in near-term

August 10, 2023, 12:57 pm

The Reserve Bank of India has increased its forecast for retail inflation in the country for 2023–24 to 5.4% from the previous forecast of 5.1% from its June monetary policy meeting.

RBI Governor Shaktikanta Das, as part of his remarks after the policy meeting, said assuming a normal monsoon, retail inflation is revised to 5.4 per cent, with Q2 at 6.2 per cent, Q3 at 5.7 per cent and Q4 at 5.2 per cent. Retail inflation for Q1 2024-25 is projected at 5.2 per cent.
“The risks are evenly balanced,” Das said.

The increase in the inflation outlook comes after retail inflation in India increased significantly in June to 4.81 percent, largely as a result of a sharp increase in the price of vegetables, including tomatoes. Along with vegetables, the indices for meat, fish, eggs, pulses, and products as well as spices increased. Retail inflation hit a two-year low of 4.25 percent in May. It was 4.7% in April compared to 5.7% the month before.

“The month of July has witnessed accentuation of food inflation, primarily on account of vegetables. The spike in tomato prices and further increase in prices of cereals and pulses have contributed to this. Consequently, a substantial increase in headline inflation would occur in the nearterm,” said Das.

RBI keeps repo rate unchanged in third consecutive policy meet

August 10, 2023, 10:49 am

The majority of financial markets had anticipated the Reserve Bank of India to maintain the repo rate at 6.5 percent during its three-day monetary policy committee meeting.

RBI Governor Shaktikanta Das on Thursday at a press conference said, “Monetary Policy Committee decided unanimously to keep the Repo Rate unchanged at 6.50%”
RBI typically conducts six bi-monthly meetings in a financial year, where it decides interest rates, money supply, inflation outlook, and various macroeconomic indicators. The ongoing three-day and the third meeting of 2023-24 started on Tuesday.

The monetary policy committee of the central bank unanimously decided to maintain the repo rate at 6.5 percent at its previous meeting in early June, as most analysts had predicted. The repo rate was paused by the RBI at its meeting in April as well. The interest rate at which the RBI lends money to other banks is known as the repo rate.

A consistent decline in inflation (currently at an 18-month low) and its potential for further decline may have prompted the central bank to put the brake on the key interest rate again. Inflation has been a concern for many countries, including advanced economies, but India has managed to steer its inflation trajectory quite well.

Indian stocks markets hold steady ahead of RBI’s monetary policy statement

June 8, 2023, 10:14 am

On Thursday morning, Indian stock indices traded steadily, with all eyes on the Reserve Bank of India’s (RBI) conclusion from its bi-monthly monetary policy review. RBI governor Shaktikanta Das is to read out the monetary policy meeting outcome at 10 am. A majority of analysts, though, expect the RBI will continue to keep the repo rate unchanged at 6.5 per cent. A consistent decline in inflation (currently at an 18-month low) and its potential for further decline may prompt the central bank to put the brake on the rate again.
The RBI in its April meeting paused the repo rate.
Barring the April pause, the RBI raised the repo rate, the interest rate at which it lends to banks, by 250 basis points cumulatively to 6.5 per cent since May 2022 in the fight against inflation. Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline.
Besides putting a brake on the interest, the RBI may also give a fresh outlook on growth and inflation 2023-24 after GDP numbers for 2022-23 came above estimated figures. As per the provisional estimates released by the National Statistical Office (NSO) recently, real GDP growth for 2022-23 stood at 7.2 per cent, higher than the 7 per cent projected.

Indian stocks remain stable ahead of RBI’s monetary policy meet

June 6, 2023, 10:34 am

As investors waited for new clues from the Reserve Bank of India’s bimonthly monetary policy review, Indian market indices mostly traded steadily on Tuesday morning. Investors eye policy outcome of the meeting, headed by RBI governor Shaktikanta Das, to be announced Thursday. A majority of analysts expect the RBI awill continue to keep the repo rate unchanged at 6.5 per cent. A consistent decline in inflation (currently at 18-month low) and its potential for further decline may prompt the central bank to put the brake on the rate again.
RBI’s consistent monetary policy tightening since mid-2022 could be attributed to the substantial decline in inflation numbers in the country.
The RBI in its April meeting paused the repo rate.
SBI Research said it expects the RBI to again pause repo rate in June policy meet. “We believe at 6.50 per cent, we are in for a prolonged pause….”
Barring April pause, the RBI raised the repo rate by 250 basis points cumulatively to 6.5 per cent since May 2022 in the fight against inflation.
Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline.
“…it is crucial to exercise caution as there is currently no clear trend in the market. According to Ameya Ranadive, an equity research analyst at Choice Broking, investors and traders should regularly follow market events and adjust their tactics as necessary.

Shaktikanta Das congratulates Team RBI for serving the country for 88 years

April 3, 2023, 4:51 pm

Governor of the Reserve Bank of India, Shaktikanta Das congratulated the central bank on its 88 years of dedicated service to the country.

“Congratulations Team RBI for their 88 years of dedicated service to the nation. It’s a sobering experience. A day to renew our commitment to the duties of this national organization,” the Governor said in a tweet. With its Monetary Policy Committee meetings on April 3, 4, 5, and 6, the RBI began its first bi-monthly assessment of the new fiscal year. In a year, the central bank examines its monetary policy six times bimonthly. There are also out-of-cycle reviews, in which the central bank holds extra meetings in moments of emergency.

Stakeholders are watching these sessions closely as almost every central bank attempts to assess rising inflation amid fears of a mild recession.
When the three-day discussions conclude on Thursday, the results of the meetings will be released.

The RBI’s Monetary Policy Committee (MPC) agreed in early February to raise the repo rate by 25 basis points to 6.5 percent to control inflation. Raising interest rates is a monetary policy tool that usually helps to suppress demand in the economy, allowing the inflation rate to fall.
According to the newest Ecowrap report from SBI Research, the RBI is anticipated to pause its interest rate hike, and the current 6.5 percent repo rate may be the terminal rate for the time being.
As per the reports, the RBI has sufficient reasons to postpone the repo rate hike at its April conference.