Heena Sharma Blog

Defending the timing of YES Bank 's moratorium, Reserve Bank of India (RBI) governor Shaktikanta Das on Friday assured swift resolution to the issues concerning the beleaguered lender. “ The resolution will be done very swiftly, it will be done very fast. 30 days which we have given is the outer limit. You will see a very swift action from RBI,” told reporters after ASSOCHAM's 15th annual banking summit. "The decision is taken at a larger level, not at individual entity level, the move is aimed at ensuring safety of financial system," he added On the timing of the action on YES Bank, Das said there is always debate over RBI acting prematurely or taking too long to act. “ A market-led and bank-led resolution of the problem is always preferable. You have to give time to the bank management to take step and efforts. And the bank did take efforts. When we found that we cannot wait and should not wait any longer, we decided to intervene," Das added. Read

As expected, the six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI) unanimously voted to lower the repo rate by 0.25 per cent in its three-day monetary policy meet, which ended on Thursday. The repo rate that stands at 5.75 per cent post the Thursday’s review is the lowest in nine years. This is the first time in 2019 when all members of the MPC (Dr. Chetan Ghate, Dr. Pami Dua, Dr. Ravindra H. Dholakia, Dr. Michael Debabrata Patra, Dr. Viral V. Acharya and Shri Shaktikanta Das) unanimously decided to reduce the policy repo rate by 25 basis and change the stance of monetary policy from neutral to accommodative. Accommodative stance indicates that the rate increase is off the table, said RBI Governor Shaktikanta Das. “ The RBI policy announcement is exactly on the same lines as expected by most of the market participants. The repo rate cut of 0.25 % and the change of stance from neutral to accommodative is key to supporting the sagging economic grow