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 law to back state action: SC Warns UP Govt on Banners Shaming CAA Protesters
News Network
March 12,2020
New Delhi, Mar 12: The Supreme Court told the Uttar Pradesh government on Thursday that as of now, there was no law that could back their action of putting up roadside posters of those accused of vandalism during anti-CAA protests in Lucknow.
An apex court bench refused to stay the March 9 Allahabad High Court order directing the Yogi Adityanath administration to remove the posters.
The top court, which grilled the Uttar Pradesh government for putting up such posters in public, described the plea as a matter that needed "further elaboration and consideration".
A vacation bench of justices U U Lalit and Aniruddha Bose said a "bench of sufficient strength" would consider next week the Uttar Pradesh government's appeal against the Allahabad High Court order directing the state administration to remove the posters of those accused of vandalism during anti-CAA protests.
It directed the apex court registry to put up the case file before Chief Justice of India (CJI) S A Bobde so that a "bench of sufficient strength can be constituted at the earliest to hear and consider" the case next week.
During the hearing, the bench told Solicitor General Tushar Mehta, appearing for the Uttar Pradesh government, that it was a matter of "great importance".
It asked Mehta whether the state government had the power to put up such posters.
The top court, however, said there was no doubt that action should be taken against rioters and they should be punished.
Mehta told the court that the posters were put up as a "deterrent" and the hoardings only said that these persons were liable to pay for their alleged acts during the violence.
Senior advocate A M Singhvi, appearing for former IPS officer S R Darapuri whose poster has also been affixed in Lucknow, told the bench that the state was duty-bound to show the authority of law backing its action.
He said the action of the Uttar Pradesh government amounted to a "mega blanket" approach of naming and shaming these persons without final adjudication and it was an open invitation to common men to lynch them as the posters also had their addresses and photographs.
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Delhi voilence: Court grants bail to 3 PFI members arrested by cops
Agencies
March 14,2020
New Delhi, Mar 14: A Delhi court on Friday granted bail to three alleged members of the Popular Front of India (PFI) -- Parvez (Delhi President), Iliyas (Delhi Secretary) and Danish -- in connection with the organization's role in the northeast Delhi violence last month.
Metropolitan Magistrate Prabhdeep Kaur granted bail to all three accused on furnishing personal bail bonds of Rs 30,000 each.
The court said that "Investigating Officer (IO) has nowhere mentioned that any of the non-bailable offences has been disclosed or has come out during investigation till now, therefore, accused be enlarged on bail."
According to police, the three men were arrested for allegedly spreading fake propaganda during the anti-CAA protests.
Delhi police, while opposing bail and seeking remand, stated that police custody is required because accused were involved in a conspiracy of communal riots which resulted in the death of 50 innocent people and injuries to approximately 300 persons and huge loss of government and public properties.
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After CAA, Centre might bring population control law: Niranjan Jyoti
News Network
March 2,2020
Mathura, Mar 2: Union Minister of state Sadhvi Niranjan Jyoti on Sunday said after the Citizenship (Amendment) Act (CAA), the Centre might bring a population control law.
Jyoti claimed that she has already spoken to Prime Minister Narendra Modi in this regard.
She said she believes that this issue is under the prime minister's consideration and he himself has discussed the importance of bringing this law.
Jyoti arrived here on Sunday to attend a tribute meeting held at Swami Vamdev Jyotirmath in Chaitanya Vihar. Unnao MP Sakshi Maharaj was also present at the event.
"There was a time when abrogation of Article 370 in Jammu and Kashmir was impossible. It was feared that if such thing happens, there will be bloodbath. No one will be hold the national flag in Kashmir. But this government can bring any law in favour of the nation," Jyoti said.
"Now, everyone believes that if Article 370 can be removed...Prime Minister Narendra Modi can bring any law which is important for the country," she added.
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already people are childless. struggling for IVF treatment. no need of population control. it is automatically getting control byu nature.
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