Latest RBI news

Indian Currency

Latest RBI news on moratorium (2020)

RBI- Reserve Bank of India which is controller of all banks in India published new notification today.There will be financial support of 50000 Crore for the nation. There is another notification about the Reverse Repo Rate.

Reverse Repo Rate Reduced

Reverse Repo rate reduced after consisting the present financial situation of our country from 4 to 3.75 by the Reserve Bank of India Governor Sakthi Kantha Das. Reverse repo rate is  the rate at which the central bank of India (Reserve Bank of India) borrows money from the other banks in India at certain situations to control the money supply system.

 As the interest rate reduced by the RBI, the interest for the money deposited by the banks in RBI gets only the reduced amount and banks finds it as less attractive policy to deposit the excess money in RBI in the present situation.

 So Bank will lend out more loans to the public and thus it will increase the volume of money in the public. Using this method, RBI control the deflation. This reduction in the reverse repo rate indicates the deflation in our country.

Our financial situation is little serious now.Not only our country but the whole world's too. The share markets are falling continously. RBI Governor Sakthi Kanth Das said that they are expecting 1.9% growth rate in the present situation. India will get the highest growth rate among the G20 countries.

 Some of the countries are showing the GDP rate as positive in the country and India is one of them- said by the Sakthi Kantha Das. ATMs in the country are functioning as much as possible and 91 % of them are efficiently working now. 

Banks are carrying their functions very efficiently and appreciated. RBI planned to do the following

• Availability of money in public
• Availability of loans
• Reduce the financial pressure
• 50000 Crore to the small and medium scale sectors
• Reverse Repo Rate from 4 to 3.75
• 60% extra fund to states for Covid Defence.

RBI prohibited Bank's Dividend Distribution

2019-20 financial year's dividend distribution by Indian Banks has been prohibited by the RBI till the next notifications published. Next notification will only after evaluating the financial stability of 2nd part of 2020-2021.

 Most of the shares in the Nifty is from the Banking companies and experts says that the prohibition will not affect so much to the investors. Public sector banks are the banks which distribute dividend more than the private sector banks and those who depend on private sector banks also don't get affected. 

Most of the mutual funds are depending on the banking sector to invest and they are also in panic. Guys don't worry, this time too shall pass.