RBI Monetary Policy: There is no change in the repa rate, water on expectations of cheap loan

RBI Monetary Policy: There is no change in the repa rate, water on expectations of cheap loan

Business Desk: The Reserve Bank of India has not made any change in the repo rate once again, on the expectations of the common man. Reserve Bank of India Governor Shaktikanta Das on Wednesday, during the first policy review of the current financial year, announced that there would be no change in policy rates, saying that the central bank was generous in supporting monetary growth to support growth and keep inflation at the targeted level. Will continue the policy. That is, the repo rate will remain at 4 per cent and the reverse repo rate at 3.35 per cent.

The RBI governor said that the recent increase in Kovid-19 transition has created uncertainty about the improvement in economic growth rate. At the same time, he stressed the need to stop the outbreak of the virus and focus on economic reforms. The central bank retained the economic growth target for the financial year 2021-22 at 10.5 percent. Das said that the central bank would ensure sufficient cash in the system, so that the productive sectors would get loans easily.

The salient features of RBI are as follows: -

In the first monetary review for FY 2021-22, the economic growth target for FY 2021-22 was retained at 10.5 per cent. 
The central bank will ensure sufficient cash in the system, so that the productive sectors get easy credit. 
The RBI will ensure the smooth running of the government borrowing program, financial stability will be maintained. 
RBI announced the facility of giving an additional Rs 50,000 to NABARD, NHB and SIDBI, so that they can give more new loans in the current financial year.
For the short term requirement of the states (WMA), the lending facility was increased to Rs 47,010 crore grossly.
The CPI is expected to be 5.1 per cent in FY 2022. The retail inflation is expected to be 5.20 per cent in the first and second quarter. It may be five per cent in the fourth quarter.
The inflation in food items will depend on the southwest monsoon and taxes on petrol and diesel.
There will be emphasis on increasing liquidity in the market. The central bank will buy bonds worth Rs 1 lakh crore in the first quarter of FY 2021-22. 
Bonds worth Rs 25,000 crore will be purchased under the Government Securities Program.

Das said that with the help of the government, the Reserve Bank of India will take all possible measures to guide the changes in the country's economy in the wake of the corona virus. The central bank is taking steps to provide adequate liquidity in the system. He said that the demand of customers from rural areas is increasing in the country, whereas now there are also signs of improvement in customer demand from urban areas. Economic recovery is coming due to the worldwide vaccination of coronavirus. Along with this, banking regulators around the world are softening monetary policies, which can help the global GDP. Expectations of India's GDP growth have also been strengthened due to large scale vaccination campaigns in the country.

'Government will decide to cut excise duty on petrol and diesel when the time comes'

'Government will decide to cut excise duty on petrol and diesel when the time comes'

Business Desk: Central Board of Indirect Taxes and Customs (CBIC) Chairman M Ajit Kumar said on Tuesday that the government would consider reducing petrol and diesel prices by cutting taxes when the appropriate time comes. The indirect tax collection from record excise duty on petrol and diesel was up 59 percent year-on-year in the financial year 2020-21, ending March 31. 

In a video call with reporters to give information about tax figures, he said, "We hope that the revenue will be good in the coming months." "As far as fuel price cuts are concerned," Kumar said , The Government is constantly on the lookout on this matter and I am confident that a decision will be taken whenever the time comes. Is considering a cut. However, he did not elaborate on the appropriate timing. 

The price of petrol and diesel was
raised by the government by Rs 13 per liter on petrol last year, while on diesel by Rs 16 per liter. The excise duty on petrol is now Rs 32.90 per liter. The petrol rate in Delhi is Rs 90.56 per liter and excise duty is 36 percent. Excise duty on diesel is Rs 31.80 per liter and excise duty is 39 per cent of its retail selling price of Rs 80.87 per liter. 

Adding VAT (value added tax) of states constitutes 55 to 60 per cent of the total tax in retail prices of these fuels. Petrol prices reached Rs 100 a liter in February in some parts of the country, Rajasthan, Maharashtra and Madhya Pradesh, amid the rise in the price of crude oil in the international market. Although assembly elections were announced in five states, including West Bengal, Tamil Nadu and Kerala, the price hike was put on hold. CBIC member (budget) Vivek Johri said one of the reasons for the 59.2 percent increase in excise collection is the increase in the petroleum tax rate. "If there is a deduction, the revenue collection will be affected by the excise duty," he said. 

Tax collection on oil reached Rs 2.94 lakh crore
Last month, Petroleum Minister Dharmendra Pradhan said in Parliament that tax collection on petrol and diesel was Rs 52,537 crore in 2013, which increased to Rs 2.13 lakh crore in 2019-20. At the same time, it increased to Rs 2.94 lakh crore in the first 11 months of 2020-21. CBIC did not separately provide data on excise collection on petrol and diesel in 2020-21.