Skip to main content

RBI keeps rates unchanged, maintains accommodative monetary policy stance(thehindu)

Lowers the Gross Value Added growth projection for 2016-17 to 7.1 per cent from 7.6 per cent.

The Reserve Bank of India on Thursday kept the base rate unchanged at 6.25 per cent. This was announced at its bi-monthly monetary policy review.
This, being the first monetary policy review after the demonetisation of old Rs.500 and Rs. 1,000 notes, there were wide expectations of a rate cut as banks saw a surge in deposits.
But the central bank said all Monetary Policy Committee (MPC) members voted in favour of keeping the interest rate unchanged.
"The decision of the MPC is consistent with the accomodative stance of the policy in consonance with the objective of achieving 5% CPI inflation by Q4 of FY17," the RBI said.
The RBI has lowered the Gross Value Added (GVA) growth projection for 2016-17 to 7.1 per cent from 7.6 per cent. It said it was withdrawing incremental Cash Reserve Ratio (CRR) with effect from December 10.
On demonetisation
Deputy Governor R. Gandhi defended the demonetisation programme, saying the currency ban decision was not taken in haste.
Mr. Gandhi said the RBI had infused Rs. 4 lakh crore since the note ban and 19.1 billion pieces of currency were put back into circulation. "This is more than the total of last three years."
The RBI has said Rs. 11.55 lakh crore of banned notes have come back in to the system.
RBI Governor Urjit Patel assured that the ban of legal tender status has no implications on RBI balancesheet.
Mr. Patel ruled out any fundamental trust deficit from the public.  "Most people think it's a good decision as it fights fake currency, black money and terrorism," 

Comments

Popular posts from this blog

Cloud seeding

Demonstrating the function of the flare rack that carries silver iodide for cloud-seeding through an aircraft. 
Water is essential for life on the earth. Precipitation from the skies is the only source for it. India and the rest of Asia are dependent on the monsoons for rains. While the South West Monsoon is the main source for India as a whole, Tamil Nadu and coastal areas of South Andhra Pradesh get the benefit of the North East Monsoon, which is just a less dependable beat on the reversal of the South West Monsoon winds.

SC asks Centre to strike a balance on Rohingya issue (.hindu)

Supreme Court orally indicates that the government should not deport Rohingya “now” as the Centre prevails over it to not record any such views in its formal order, citing “international ramifications”.

The Supreme Court on Friday came close to ordering the government not to deport the Rohingya.

It finally settled on merely observing that a balance should be struck between humanitarian concern for the community and the country's national security and economic interests.

The court was hearing a bunch of petitions, one filed by persons within the Rohingya community, against a proposed move to deport over 40,000 Rohingya refugees. A three-judge Bench, led by Chief Justice of India Dipak Misra, began by orally indicating that the government should not deport Rohingya “now”, but the government prevailed on the court to not pass any formal order, citing “international ramifications”. With this, the status quo continues even though the court gave the community liberty to approach it in …

Indian Polity Elections (MCQ )

1. Who of the following has the responsibility of the registration of voters
a) Individual voters
b) Government
c) Election commission
d) Corporations


2. Democracy exists in India, without peoples participation and co operation democracy will fail. This implies that
a) Government should compel people to participate and cooperate with it
b) People from the government
c) People should participate and cooperate with the government
d) India should opt for the presidential system


3. Which of the following are not the functions of the election commission
1) Conduct of election for the post of the speaker and the deputy speaker, Lok sabha and the deputy chairman, Rajya sabha
2) Conduct of elections to the state legislative assemblies
3) Deciding on all doubts and disputes arising out of elections

a) 1 and 2
b) 1 and 3
c) 2 and 3
d) 2

4. Which of the following electoral systems have not been adopted for various elections in India
1) System of direct elections on the basis of adult suffrage
2…