RBI keeps policy rates unchanged, adjusts mortgage rules to help real estate
RBI’s Monetary Policy Committee (MPC) unanimously decided to keep policy rates unchanged, Governor Shaktikanta said on Friday Das. The MPC voted to leave the policy buyout rate unchanged at 4%. The MPC has also decided to continue its accommodative policy for as long as necessary this year and next, he said.
“After the sharp decline in which the global economy sank in the second quarter of this year, there is a rebound in activity in the third quarter, but it is not uniform,”Das noted.
- The Indian economy is entering a decisive phase in the fight against Covid-19. Clearly, the deep contractions of the first quarter of 2020-2021 are behind us. The positives are between us, Das said, adding that he has always “dared to be optimistic”.
- Migrant workers return to work in urban areas and factories and construction activities are revived. E-commerce is booming and people are returning to their offices, Das said, adding that he expected positive growth in the fourth quarter.
- In an attempt to boost the real estate sector, the RBI has also decided to rationalize the risk weights of mortgage loans and to relate them only to the LTV (loan / value) ratio. This provision will apply to all new mortgages sanctioned until March 31, 2022.
- Currently, risk weights are applied to mortgage loans for both loan size and LTV ratio, which is the amount of real estate value that a bank can lend to a borrower.
- The higher the risk weight, the higher the provisions that the bank will have to take to meet the risk and, therefore, the lower its ability to lend.
- By removing risk weights relative to loan size, the RBI is targeting increased mortgage growth, which, if it occurs, would invest more money in real estate, thereby boosting construction and housing related economic activity.
World Bank cuts India forecast, says fiscal year 21 GDP will decline by 9.6%
- The World Bank, in its South Asia Economic Focus report released Thursday, significantly revised its June forecast from a 3.2% contraction of Indian GDP to 9.6%, for the year 2020-2021.
- This review reflects “the impact of the national blockade and the income shock suffered by households and businesses,” the Bank explained.
- “The situation is much worse in India than before,” said Hans Timmer, World Bank chief economist for South Asia. “It’s an exceptional situation in India. A very horrible prospect. “
- The Bank has estimated that there will be a 5.4% growth rebound in 2021-2022, but largely due to base effects and the assumption that the pandemic restrictions will be removed completely by 2022.
- “Despite measures to protect vulnerable households and businesses, the poverty reduction trajectory has slowed or even reversed,” the Bank said. He said major labor disruptions had likely worsened India’s poverty rate, with 2020 rates returning to 2016 levels.
- “We have seen it in the South China Sea, in the East China Sea, in the Mekong, in the Himalayas, in the Taiwan Strait. These are just some examples. “
- Speaking at a press conference in Beijing on Friday, the first after China National Day Week, Foreign Ministry spokesman Hua Chunying said in response to a question about the Quad meeting; “We are now in the 21st century and in an era of globalization.
- The interests of all countries are so intertwined that organizing closed and exclusive cliques will not help build mutual trust and cooperation, especially when faced with urgent tasks of fighting the pandemic and reviving the disease the global economy.
Lalu Prasad gets bail but will remain in prison
The Jharkhand High Court granted bail to jailed Rashtriya Janata Dal (RJD) President Lalu Prasad in the ₹ 959 crore forage scam case on Friday.
- The case concerned the fraudulent withdrawal of Rs 33.67 million from Chaibasa’s treasury in Jharkhand in 1992-93, while he was the undivided Chief Minister of Bihar.
- In posting the bond, the court asked Prasad to post two personal bonds of ₹ 50,000 each and post 2 lakh to secure the bond. He has been in prison for half of the five-year sentence in this case. However, Prasad will not be released from prison yet, as he has also been convicted in several other cases.
- The head of the RJD has been treated at the Rajendra Institute of Medical Sciences (RIMS) for various illnesses. Following his conviction in the forage fraud cases, Prasad has been detained at Birsa Munda Central Prison in Jharkhand since December 2017.
Bhima Koregaon Case: NIA Submits Additional Indictment Sheet
- The National Investigation Agency (NIA) on Friday filed a second additional charge sheet against seven defendants and one fugitive in the case of violence in Bhima Koregaon.
- The central agency named 83-year-old activist Father Stan Swamy, Anand Teltumbde, 70, Gautam Navlakha, 67, Hany Babu, 54, and members of the Kabir Kala Manch cultural group, Sagar Gorkhe, 32, Ramesh Gaichor, 38, and Jyoti Jagtap 32. The accused fugitive is Teltumbde’s brother, Milind Teltumbde.
- Father Stan Swamy, a Jesuit priest who works with tribes, was arrested at his home in Ranchi, the capital of Jharkhand, by a team of NIA officials from Delhi during an overnight operation. He was sent to prison until October 23 by the special court.
The press release issued by the NIA reads
“All of these defendants conspired with other defendants to promote the ideology of the CPI (Maoist) terrorist organization and encouraged violence… incited discontent with the government established by law. and it encouraged enmity between different groups on religious, caste and community grounds. The fugitive defendant, Milind Teltumbde, also organized training camps to provide weapons training to other defendants.
World Food Program wins 2020 Nobel Peace Prize
- The Nobel Peace Prize was awarded to the World Food Program on Friday for feeding millions of people from Yemen to North Korea. WFP was honored for “its efforts to combat hunger, for its contribution to improving the conditions of peace in conflict-affected areas and for having played a leadership role in efforts to prevent the use of hunger as a weapon. of war and conflict ”. Nobel committee chairman Berit Reiss-Andersen said at the award opening in Oslo.
- Whether delivering food by helicopter, elephant or camel, WFP prides itself on being “the leading humanitarian organization” in a world where by its own estimates there are some 690 million people, one of each. 11, lie down. on an empty stomach.
- “With this year’s award, the Norwegian Nobel Committee wishes to turn the world’s eyes to the millions of people who suffer or are at risk of starvation,” Reiss-Andersen said.
The number of reported coronavirus cases in India was 69.59,166 at the time of publication of this bulletin, with a balance of 1.07,109.
- The number of cases from India fell below 9 lakh for the first time after a month on Friday. India recorded 8.93 lakh of active cases today after recording 8.97 lakh on September 9, according to a statement issued by the ministry.
- Entry to the Padmanabhaswamy temple in Kerala was banned until October 15 after at least 10 priests, including the high priest and the common high priest, tested positive for the coronavirus. V Ratheesan, the temple’s executive director, said the tantri, which usually performs special ceremonies, will perform daily pujas without the worshipers.
Various airlines owe Airports Authority of India (AAI) 2,400 crore for the use of different airports across the country. Air India owes nearly ₹ 1,900 crore, and GoAir and SpiceJet have been declared “cash and carry,” where they pay their rentals daily due to unpaid charges.
- Delays in airline payments and declining revenues for airports, including those operating under the APP model, forced the AAI to borrow 1.5 billion rupees to cover its working capital needs.