Repo rate in Corona period: 10.5% growth in GDP, read the highlights of RBI announcement

Repo rate in Corona period: 10.5% growth in GDP, read the highlights of RBI announcement

Business Desk: The Monetary Policy Committee meeting of the Reserve Bank of India (RBI), which started on April 5, has ended today. RBI Governor Shaktikanta Das made the press conference and announced the decisions taken by the committee. This was the first MPC meeting for FY 2021-22. The MPC has not changed the interest rates. It may be noted that the Reserve Bank had last revised the policy rates on 22 May 2020. Despite Corona's new wave, it has projected an increase of 10.5 per cent in GDP in this financial year 2021-22.

The salient features of RBI are as follows:

RBI has not made any change in the repo rate. It remains at four per cent. The MPC has unanimously taken this decision.
That is, customers have not got new relief on EMI or loan interest rates.
The Marginal Standing Facility (MSF) rate is also at 4.25 per cent.
Das further said that the reverse repo rate has also been kept constant at 3.35 per cent.
With this, it has been decided not to change the bank rate. It stands at 4.25 percent.
Along with this, the central bank has kept the monetary stance ‘liberal’.
Das said that the central bank would ensure sufficient cash in the system, so that the productive sectors would get loans easily.
The global economy is improving but uncertainty still persists.
The Reserve Bank of India has projected a 10.5 per cent increase in the country's GDP in the current financial year 2021-22. In the last meeting too, only a 10.5 per cent increase in GDP was estimated.
It will be 22.6 per cent in the first quarter of this fiscal, 8.3 per cent in the second quarter, 5.4 per cent in the third quarter and 6.2 per cent in the fourth quarter.
He said that as the vaccination is getting faster, the world economy will improve. All possible efforts will be made to improve the economy.
Shaktikanta Das said that the economy is improving despite the corona virus epidemic.
But the way Corona cases have increased recently, there has been little uncertainty. But India is ready to meet the challenges.
On inflation, Das said, CPI could remain at 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.
In the fourth quarter of FY 2021, CPI is expected to be five per cent.
Shaktikanta Das said that the inflation of food items will depend on the southwest monsoon and taxes on petrol and diesel.
He said that there will be emphasis on increasing liquidity in the market. In the first quarter of FY 2021-22, the central bank will buy a bond of one lakh crore rupees. Bonds worth Rs 25,000 crore will be purchased under the Government Securities Program.
TLTRO on tap scheme was announced to be extended. The TLTRO on tap scheme has been extended to 30 September 2021. 
Besides, an aid of Rs 50,000 crore has also been made to NABARD, National Housing Board (NHB) and SIDBI. Out of this, NABARD will get 25,000 crores, NHB will get 10,000 crores and SIDBI will be given 15000 crores.
Payment companies will also be able to transfer money through National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS). Till now this facility is available only to banks.


'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.