RBI releases Second Bi-monthly Monetary Policy Statement 2018-19
The Reserve Bank of India (RBI) on June 6, 2018 released its Second Bi-monthly Monetary Policy Statement 2018-19.
After assessing the current and evolving macroeconomic situation in the economy, the six members Monetary Policy Committee (MPC) decided to increase the policy Repo Rate under the Liquidity Adjustment Facility (LAF) by 25 basis points to 6.25 percent. The Reverse Repo Rate under the LAF stands adjusted to 6.0 percent. The Marginal Standing Facility (MSF) rate and the Bank Rate stand at 6.5 percent.
India records 22 per cent reduction in Maternal Mortality Ratio
India recorded 22 per cent reduction in Maternal Mortality Ratio (MMR) since 2013, as per the Sample Registration System (SRS) bulletin that was released by the Office of the Registrar General of India on June 6, 2018.
According to the bulletin, the Maternal Mortality Ratio in India declined from 167 in 2011-2013 to 130 in 2014-2016. The MMR is defined as the proportion of maternal deaths per 1, 00,000 live births. The decline in the ratio was most significant in Empowered Action Group (EAG) states from 246 to 188.
RBI to set up Public Credit Registry to curb bad loans
The Reserve Bank of India (RBI) on June 6, 2018 announced to set up a Public Credit Registry, an information repository that has all loan information of individuals and corporate borrowers.
The repository will be set up in a modular and phased manner. Moreover, RBI will be setting up an implementation task force to undertake the logistics for setting up of the credit repository. With the help of the credit repository, banks will be able to differentiate between a bad and a good borrower, thus, can accordingly offer attractive interest rates to good borrowers and higher interest rates to bad borrowers.
RBI allows Urban Co-operative Banks to become Small Finance Banks
The Reserve Bank of India (RBI) on June 6, 2018 decided to allow voluntary transition of the Urban Co-Operative Banks (UCB) into Small Finance Banks (SFB), a move that is aimed at bringing UCBs into mainstream banking.
The Urban Co-Operative Banks can now covert into SFBs after meeting the prescribed criteria. The details of the scheme will be announced separately by the RBI. The move is an outcome of the recommendations made by the High Powered Committee on Urban Cooperative Banks in August 2015. The committee was chaired by R Gandhi, the then Deputy Governor of the RBI.
World Bank approves funding for Atal Bhujal Yojana
The World Bank has approved Water Resources and River Development Ministry’s Rs 6000 crore worth central sector scheme, ‘Atal Bhujal Yojana’.
The scheme will be implemented over a period of five years from 2018-19 to 2022-23 with assistance from the World Bank. The scheme proposal has already been recommended by the Expenditure Finance Committee and the Ministry will be seeking Cabinet approval for the project shortly.