Mumbai, Mar 27: The Reserve Bank of India (RBI) on Friday lowered the key repo rate by 75 basis points to 4.4 per cent in a bid to arrest the economic slowdown amid coronavirus (COVID-19) outbreak.
The reverse repo rate now stands at 4 per cent, down by 90 basis points, said RBI Governor Shaktikanta Das adding this has been done to make it unattractive for banks to passively deposit funds with the central bank and instead lend it to the productive sectors.
The six-member monetary policy committee (MPC) met on March 24, 25 and 27 and voted 4:2 in favour of the repo rate reduction. The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth and mitigate the impact of COVID-19 on the economy while ensuring that inflation remains within the target.
"The need of the hour is to shield the economy from the pandemic," said Das. "We need to mitigate the impact of coronavirus, revive economic growth and provide financial stability."
Repo rate is the rate at which a country's central bank lends money to commercial banks, and the reverse repo rate is the rate at which it borrows from them.
The RBI Governor further said that the economic growth and inflation projection will be highly contingent depending on the duration, spread and intensity of the pandemic.
"Global economic activity has come to a near standstill as COVID-19 related lockdowns and social distancing are imposed across a widening swathe of affected countries. Expectations of a shallow recovery in 2020 from 2019's decade low in global growth have been dashed," said Das.
"The outlook is now heavily contingent upon the intensity, spread and duration of the pandemic. There is a rising probability that large parts of the global economy will slip into recession," he said.
However, the RBI has injected liquidity of Rs 2.8 lakh crore via various instruments equal to 1.4 per cent of GDP. "Along with today's measures, liquidity measures equal to 3.2 per cent of GDP. The RBI will take continuous measures to ensure liquidity in the system."
The RBI governor has said that all banking institutions can offer a three-month moratorium on all loans for a period of three months. The RBI has also allowed banks to restructure the working capital cycle for companies without worrying that these will have to be classified as a non-performing asset (NPA).
The three-month moratorium will permit banks to avoid a large onset of NPAs during the 21-day lockdown and keep their books healthy.
Das said banks and other financial institutions should do all they can to keep credit flowing to economic agents facing financial stress on account of the isolation that the virus has imposed.
"Market participants should work with regulators like the RBI and the Securities and Exchange Board of India (SEBI) to ensure the orderly functioning of markets in their role of price discovery and financial intermediation," he said.
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RBI reduces repo rate by 75 basis points to battle COVID-19 impact
News Network
March 27, 2020
No evidence yet of coronavirus transmission onboard plane: IndiGo CEO
News Network
June 3,2020
Jun 3: Emphasising that airlines are clearly the safest mode of transportation, IndiGo CEO Ronojoy Dutta on Tuesday said there is no evidence yet of coronavirus infection getting transmitted among passengers onboard an aeroplane.
His comments against the backdrop of instances of some passengers, who had taken flights after resumption of domestic air services on May 25, testing positive for coronavirus.
"Those people had the virus before they got on to the aeroplane. What is noteworthy is that they have done the tracing after that. There is no evidence of transmission onboard there... that is a very encouraging sign on the safety of airline travel," he said during an earnings call.
According to him, airlines are clearly the safest mode of transportation and there is no evidence yet of contamination on an aircraft.
"You can come in contaminated but so far there is no evidence of passing it on to a fellow passenger," he noted.
Amid concerns over the coronavirus pandemic, aviation regulator DGCA has asked airlines to ensure that to the extent possible, middle seat in flights should be kept empty.
In this regard, Dutta said the airline would keep the middle seat empty wherever it can and "where we have to fill the middle seat, we will have the extra protective gown".
To a query about possible hedging of fuel prices, he said it would be a dumb idea and that airlines adjust to ups and downs in fuel prices.
"I can't overemphasise what a dumb idea it will be for an airline to hedge fuel prices. I looked at it from different angles and it is not a good idea... we looked at hedging and we talked about it at the board level and we said no," he noted.
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Swiggy co-founder Rahul Jaimini moves away from active role, to join Pesto Tech
News Network
May 7,2020
New Delhi, May 7: Food ordering and delivery platform Swiggy on Thursday said its co-founder and CTO Rahul Jaimini will move away from active role in the company during the month to pursue another entrepreneurial venture.
Jaimini will be joining Pesto Tech, a career accelerator start-up, as their co-founder, Swiggy said in a statement.
He will continue to be a shareholder and board member of Swiggy, it added.
Functions currently led by Rahul, including platform engineering, analytics, IT and labs, will be realigned to Dale Vaz, Head of Engineering and Data Science, who has been with the company for close to two years, the statement said.
"Technology was crucial to what we set out to build when we started Swiggy. Nandan (Reddy) and I could not have asked for a better partner to handle this aspect of the company," Swiggy co-founder and CEO Sriharsha Majety said.
It was Rahul's immense passion to 'build for the billions' that drove technological innovations that set Swiggy apart as we grew phenomenally over the years, he added.
"Working with technology that has large scale impact is what excites me, and I am grateful to have had the opportunity to do just this at Swiggy and grow tremendously over the years," Jaimini said.
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'Did I ask for stars and moon?': Uddhav on severing ties with BJP over CM post
News Network
February 3,2020
Mumbai, Feb 3: Maharashtra Chief Minister Uddhav Thackeray, whose party severed ties with the BJP after the state elections, on Monday said that if somebody breaks a promise, "pain and anger is obvious".
"No, I did not get any shock," Thackeray said in an interview with Shiv Sena mouthpiece Saamana while talking about forming an alliance with NCP and Congress, and becoming the Maharashtra Chief Minister.
"I am a son of Shiv Sena Pramukh (Balasaheb Thackeray), several people tried to give a shock to me but they didn't succeed. This is a field where you have to accept in the beginning that there will be a bit pushing and pulling," Thackeray said.
He added that accepting the Chief Minister's post was not a shock for him and neither was it his "dream at any point of time".
"But I can say one thing for sure that I had decided to go to any level to fulfil the promise which I made to Balasaheb Thackeray. I want to further clear it that me becoming Chief Minister is not the fulfilling of the promise made to Shiv Sena Pramukh but it's just a step towards that. I will fulfil every promise which I made to my father," Uddhav Thackeray said.
"There are several types of shock. Did people like it or not, it is the important part. I have spoken on this issue (alliance with NCP and Congress) several times and even people have understood this. Making promises and keeping them are two different things. If someone breaks a promise, pain and anger is obvious," he added.
The Chief Minister said that he does not know if BJP "has come out their shock till now or not."
"But I have to say if they had kept their promise what would have happened, what a big deal had I asked for? Did I ask for stars and moon? I only asked for what was decided before Lok Sabha polls, when we decided seat distribution," he said.
He further said, "Maharashtra and the country are watching (who betrayed/shocked whom), I don't need to say much on this."
Soon after the Assembly election results, Shiv Sena demanded rotation of the chief minister's post and equal power-sharing in the state government, which was rejected by then ally BJP. The weeks of political stalemate led to the imposition of President's rule on November 13.
Firm on its demands, Sena, the second-largest party in the state, did not hesitate to cobble up with the ideological opponents -- NCP and Congress -- and was given the chief minister's post.
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