RBI hikes repo rate by 25 basis points to 6.25%
The six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI) on 6th June increased the repo rate by 25 basis points to 6.25%. The MPC had become ‘uncertain’ following a surge in international crude oil prices. This is the first rate hike in four-and-a-half years; the last was in January 2014. The RBI increased its inflation projection to 4.8%-4.9% in the first half (H1) of the financial year and 4.7% in the second half. The outlook for GDP growth for 2018-19 has been retained at 7.4% as projected in the April policy. GDP growth is projected to be in the range of 7.5-7.6% in H1 and 7.3-7.4% in H2, with risks evenly balanced, the RBI said.
Other Rates kept unchanged as follows:
Reverse Repo Rate: 5.75%
Cash Reserve Ratio (CRR): 4%
Statutory Liquidity Ratio (SLR): 19.5%
Marginal Standing Facility (MSF): 6.5%
Bank Rate: 6.5%
India ranks 137th on Global Peace Index 2018
India has moved up four places to the 137th rank among 163 countries on the 2018 Global Peace Index, due to a reduction in the level of violent crime driven by increased law enforcement, according to a report by an Australian think tank. Iceland remains the most peaceful country in the world, a position it has held since 2008. New Zealand, Austria, Portugal and Denmark also sit in the top five most peaceful rankings. Syria remains the least peaceful country in the world
Reserve Bank changes NPA norms for MSMEs
In a major relief to MSMEs, the Reserve Bank today eased NPA classification norms for such units facing input credit linkages and associated issues under the Goods and Services Tax. “In continuation of support and relief to MSMEs, NPA recognition for GST and non-GST MSMEs is now at 180 days for dues up to December 31, 2018,” Financial Services Secretary Rajiv Kumar said.
RBI to set up Public Credit Registry on all borrowers
In a bid to check loan defaults, RBI said today that a Public Credit Registry (PCR) will be set up containing information on all borrowers to ensure financial stability. Following a report by Yeshwant M Deosthalee headed High-Level Task Force, RBI said it has considered the recommendations and decided to set up a PCR in a modular and phased manner.
World Bank approves Rs. 6,000 crore Atal Bhujal Yojana
The World Bank has approved Atal Bhujal Yojana (ABHY), a Rs.6000 crore Central Sector Scheme of the Ministry of Water Resources, River Development and Ganga Rejuvenation. The scheme is to be implemented over a period of five years from 2018-19 to 2022-23, with World Bank assistance. Atal Bhujal Yojana has been formulated by the Ministry to address the criticality of ground water resources in a major part of the country.
Baba Kalyani heads a group to study SEZ Policy
The government of India has constituted a group of eminent persons headed by Baba Kalyani, Chairman of Bharat Forge to study the Special Economic Zones (SEZ) Policy of India. The SEZ Policy was implemented from 1st April, 2000. Subsequently the Special Economic Zones Act, 2005 was passed by Parliament in May 2005 and received Presidential assent on 23 June, 2005 and the Special Economic Zone Act was enacted. The SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February, 2006.
Vijay Shekhar Sharma, Shailesh Vickram Singh set up $150 mn green fund
Paytm founder Vijay Shekhar Sharma and venture capitalist Shailesh Vickram Singh have collaborated to set up USD 150 million fund that will invest in startups working in areas like agriculture, renewable energy and e-waste management.
India, Thailand to kick off military exercise this August
The joint exercise code-named “MAITREE-2018” is scheduled to take place in Mueang, Chachoengsao Province, Thailand between the forces of Indian Army and Royal Thai Army in August.
Learn Two a Day:
United Nations Development Programme (UNDP): New York, USA
United Nations Children’s Fund (UNICEF): New York, USA