RBI Monetary Policy HIGHLIGHTS: MPC holds repo rate, says priority is to nurture growth; retains GDP target

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Updated: August 6, 2021 4:58:34 pm

RBI Monetary Policy HIGHLIGHTS: The Reserve Bank of India’s Monetary Policy Committee has kept the repo rate unchanged at 4%

RBI, RBI Governor shaktikanta das, Central bank, reserve bank of indiaThe RBI is widely expected to keep repo and reverse repo rates unchanged for the seventh time in a row

RBI MPC HIGHLIGHTS August 2021: The Reserve Bank of India’s Monetary Policy Committee has kept the repo rate unchanged at 4 per cent. This is the seventh straight MPC, when RBI kept the rates steady. RBI Guv SHaktikanta Das said that MPC has decided to leave repo rate unchanged and continue with the accommodative stance as long as necessary to support growth​. Das said that India is a much better position as compared to June 2021. “There’s a need to remain vigilant on the possibility of a third COVID wave,” Das said. RBI Guv said that rural demand will push private consumption, and urban demand will drive services and pent-up demand.

 

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Highlights

    15:32 (IST)06 Aug 2021
    RBI MPC August 2021: RBI looks at flexible inflation targeting; more VRRRs to absorb surplus liquidity

    On a headline basis, the policy has been on expected lines – not merely with respect to the repo and reverse repo rates but also the enablers that the RBI has consistently tried to build as a response to COVID-19 – that of keeping liquidity adequate, managing the government security yields and push credit to segments that are starved of funds. However, the RBI has attempted to sensitize the market about its role of anchoring inflation expectations at 4% and in the process reestablishes the element of credibility of market participants in the central bank.

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    15:32 (IST)06 Aug 2021
    RBI Guv Shaktikanta Das holds repo rate, extends on-tap TLTRO, more VRRRs; check what experts say

    The Reserve Bank of India’s Monetary Policy Committee (MPC) has kept the repo rate and reverse repo rate steady for the seventh consecutive time in August 2021. The monetary policy decision of status quo on interest rates was unanimous by all the six MPC members. RBI Governor Shaktikanta Das announced to maintain the policy stance ‘accommodative’ for as long as necessary to support growth​. The vote on continuing with the accommodative policy stance was 5:1. 

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    14:05 (IST)06 Aug 2021
    RBI decides to continue with expansionary monetary policy stance

    CPI inflation has remained above the inflation-target range for two consecutive months. While we expect that lower supply disruptions with easing mobility restrictions across States will help prices to come down, there are still significant risks lingering. Higher commodity prices and rising global prices post the robust recovery in a few industrial countries will have implications on production costs. As expected, the RBI preferred to be on a wait-and-watch mode as it has limited elbow room to maneuver monetary policies. The RBI decided to continue with an expansionary monetary policy stance and provided forward guidance. Rumki Majumdar, Economist, Deloitte India

    14:00 (IST)06 Aug 2021
    Real estate demand is expected to continue going ahead

    The RBI has declared the accommodative policy stance amid the fears of the expected third wave of the pandemic yet again. It is imperative that low mortgage rates would continue for at least some more time now or maybe until the end of the year. This will provide the required fuel for the growth of the economy along with the real estate industry with which several other allied sectors are linked. Apart from the low-interest rates, the consumers' realization of owning a home along with the stamp duty cut in the key markets were the growth drivers for the real estate sector in the past few quarters and the strong demand is expected to continue going ahead. Sandeep Runwal, Managing Director, Runwal Group, President-Elect, NAREDCO Maharashtra

    13:27 (IST)06 Aug 2021
    Keen to see steps that enhance market’s momentum, spur greater economic growth

    As the second wave of the COVID-19 pandemic comes to an end and supply chains show signs of recovery, the real estate industry is inching towards normalcy. We are hopeful that the RBI and the Central Government will make announcements that trigger demand and boost the residential market segment. Just like the fiscal measures adopted last year, we are keen to see steps that enhance the market’s momentum and spur greater economic growth. Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani

    13:21 (IST)06 Aug 2021
    RBI's focus should be on boosting growth with right fiscal measures, policy support

    The Consumer Price Index inflation rate of more than 6% for May-June was beyond the Reserve Bank of India’s (RBI’s) tolerance mark. The RBI’s accommodative monetary policy and unchanged low-interest rates could become a challenge for it if inflation spikes again. While the status quo maintained by the RBI is appreciated, the focus should be on boosting growth with the right fiscal measures and policy support. This is especially important at a time when the International Monetary Fund has cut India’s growth estimate from 12.5% in April to 9.5% in July. Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani

    13:18 (IST)06 Aug 2021
    Planning and negotiating smartly with banks on home loans rates is advisable

    The move by the Reserve Bank of India's Monetary Policy Committee to keep the repo rate unchanged at 4% was an expected move given the growth concerns hanging over the economy, especially from the impending third wave of the COVID19 pandemic. Even though inflation is high and a concern, any rate hike at this juncture would've been a deterrent to growth. Also, although the RBI maintained GDP growth forecast at 9.5% for FY22, Governor Shaktikanta Das has pointed out that the underlying conditions around aggregate demand are still weak. For home buyers this removes any kind of uncertainty over interest rates as we can expect this accommodative stance to continue for some time. However, planning ahead and negotiating smartly with banks on home loans rates is always advisable. Ravindra Sudhalkar, CEO at Reliance Home Finance

    13:17 (IST)06 Aug 2021
    Homebuyers should take advantage of current situation

    The RBI leaving the key rates unchanged was very much expected as the slow easing of localized lockdowns, slow pace of vaccinations and the looming threat of another wave continue to hinder economic revival. Although the low interest rates will provide a sustained growth for the real estate sector, the developer's focus on the completion of projects and overall economic recovery will be the key factors driving the real estate demand going forward. The homebuyers should take advantage of the current situation because there are chances that the prices might go upwards later on account of reducing supply and the pressure of increased costs of raw materials such as steel and cement. Vinay Kedia, Director, Prescon Group

    12:37 (IST)06 Aug 2021
    Current scenario offers excellent investment opportunities in residential segment

    Repo rate cuts have been kept unchanged time and again by the RBI during the last few quarters to keep the economy of the country afloat amidst the pandemic. Maintaining an accommodative stance indicates the RBI will intervene to provide the right push and direction to growth whenever necessary. The current scenario offers excellent investment opportunities in the residential segment as affordability is at all-time high. We require support from the banks by providing adequate liquidity that will boost the real estate sector. Himanshu Jain, VP - Sales, Marketing and CRM, Satellite Developers Pvt. Ltd.

    12:32 (IST)06 Aug 2021
    Small steps towards rate, liquidity normalisation as economy continues to improve likely

    While the MPC has decided to maintain status quo on key policy rates and voted 5-1 in favour of continuing with accommodative stance in this meeting, it has also taken few expected steps towards normalisation of excess system liquidity. A phased increase in the quantum of Variable Rate Reverse Repo operations to INR 4 trillion is one such measure that in our view marks the beginning of a cautious withdrawal of exceptional, post-Covid accommodation. However, with continuing emphasis on orderly evolution of yield curve and ongoing support via GSAP, OMOs and OT, markets are expected to take these measures in to its stride. Going forward, we continue to expect further baby steps towards rate and liquidity normalisation as economy continues to improve. Churchil Bhatt, EVP Debt Investments, Kotak Mahindra Life Insurance Company

    12:30 (IST)06 Aug 2021
    Markets could start pricing in possibilities of rev repo rate hike, though policy refrained from such guidance

    The RBI MPC left key rates unchanged – on expected lines. The accommodation bias was maintained too, however with 5-1 (1 member dissenting). The Variable rev repos (VRRR) amount was also graded increased from Rs 2 trn to Rs 4 trn over next 1 month. This policy has embarked on liquidity normalisation as a start point, being mindful of growth drivers as well. We could see the yield curve gradually flatten with shorter end moving up tad faster than longer end. Markets could start pricing in possibilities of rev repo rate hike, though the policy refrained from any such guidance. Lakshmi Iyer, CIO (Debt) & Head Products, Kotak Mutual Fund

    12:25 (IST)06 Aug 2021
    RBI retains real GDP growth projection at 9.5 pc for 2021-22

    The Reserve Bank on Friday retained the real GDP growth projection at 9.5 per cent for 2021-22 as domestic economic activity has started normalising with the ebbing of the second wave of the virus and the phased reopening of the economy. In the June monetary policy, the RBI had lowered the growth projection for 2021-22 to 9.5 per cent from 10.5 per cent estimated earlier.

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    12:24 (IST)06 Aug 2021
    There are no clear indications regarding timeframe for normalization of policy corridor

    While RBI would continue to maintain adequate systemic liquidity and implement the previously announced programmes like the GSAP, it has also announced its intent to manage short-term liquidity more actively through a significantly higher quantum of Variable Rate Reverse Repo Auctions (VRRR). However, there are no clear indications regarding the timeframe for the normalization of the policy corridor. The policy support for the stressed sectors has been reaffirmed with the extension of timelines for TLTRO till Dec-21 and relaxation in some key financial parameters for the OTR under Covid. This will help in quicker resolution of some of the pending stressed exposures in the banking system. Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research

    12:22 (IST)06 Aug 2021
    It is interesting to observe the growth projections for next few quarters

    As widely expected, MPC has continued with its accommodative stance without any alteration in the benchmark rates given the continuing uncertainty on the domestic growth trajectory and the persistent risks of a fresh wave of the Covid pandemic. While RBI maintained its GDP growth forecast at 9.5% for FY22, it is interesting to observe that the growth projections for the next few quarters in the current fiscal have been scaled down while enhancing the growth estimates for Q1FY22. This reflects the central bank’s concerns on the pace of consumption demand revival despite the expectations of a favorable Kharif crop, buoyant exports, steady progress in vaccination, and a conducive monetary and fiscal policy. Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research

    12:20 (IST)06 Aug 2021
    RBI to pump Rs 50,000 crore via G-SAP 2.0 in August

    The Reserve Bank of India on Friday said it will undertake a secondary market government securities acquisition programme or G-SAP 2.0 worth Rs 50,000 crore in two tranches this month to enable an orderly evolution of the yield curve. “Our recent G-SAP auctions that have focussed on securities across the maturity spectrum are intended to ensure that all segments of the yield curve remain liquid,” RBI Governor Shaktikanta Das said while announcing the third bi-monthly monetary policy. 

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    12:18 (IST)06 Aug 2021
    MPC meet: Key highlights of RBI monetary policy review

    Significant cut in interest rates on personal housing loans and loans to commercial real estate sector augurs well for the economy. RBI announces additional measures on liquidity front. After onset of COVID pandemic, RBI says it announced over 100 measures to mitigate its impact. Next meeting of the MPC scheduled for October 6 to 8.

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    12:09 (IST)06 Aug 2021
    Investors can consider investing up to 25% in well researched REITs, InVITs

    From investors point of view, focus should be towards investing in high quality roll down accrual strategies through a bar-bell approach viz. combination of short term and long term maturity strategies with weighted average portfolio average maturity of 4-5 years. For yield enhancement, investors can also consider investing upto 25% in well researched REITs, InVits, select high yield MLDs, etc. Nitin Shanbagh, Head – Investment Products, Motilal Oswal Private Wealth

    12:08 (IST)06 Aug 2021
    RBI may gradually signal towards normalization of rates

    RBI continues to prioritize growth and maintain financial stability as far as necessary. Having said, it remains mindful of anchoring inflation expectations. While maintaining a balance between growth/inflation dynamics, RBI is likely to continue with orderly evolution of the yield curve through OMOs & GSAPs. Till durable growth recovery is seen, RBI may not resort to reversal of policy rates and would maintain sufficient liquidity in the system. However, RBI may gradually signal towards normalization of rates. Nitin Shanbagh, Head – Investment Products, Motilal Oswal Private Wealth

    12:07 (IST)06 Aug 2021
    Rupee falls after making a high of 74.09

    The RBI kept the rates unchanged in its monetary policy statement and kept the stance accommodative. They kept the growth unchanged at 9.5%. The inflation was expected to be at 5.7% up from 5.1% for FY’22. One member has voted against the accomodative. Bond yields rose on less dovish policy from RBI. The stock markets fell as the Amazon-RIL Future Group verdict went in favor of Amazon in SC. The rupee fell after making a high of 74.09 as RBI started absorbing inflows and importers bought dollars to hedge. Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors

    12:05 (IST)06 Aug 2021
    RBI MPC outcome on expected lines

    For better management and absorption of liquidity, the quantum of variable rate reverse repo (VRRR) auction 1.50 lac is is a step in the right direction considering the current liquidity trends. All in all the policy is on expected lines with a need to keep our fingers crossed on the emerging growth - inflation matrix. Jyoti Prakash Gadia, Managing Director, Resurgent India

    12:04 (IST)06 Aug 2021
    A need to keep observant eye on inflation highlighted with revised inflation target

    As anticipated, the Reserve Bank of India has kept the policy rates unchanged. This has been prompted by the expectation that inflation and price Momentum shall soften, once the adverse supply-side issues are taken care of, post the recovery from the second wave. RBI has also indicated the likely emergence of green shoots based on quick indicators relating to consumption investment and foreign demand which has guided the status quo on stance. A need to keep an observant eye on inflation has been highlighted with a revised inflation target raised to 5.7 % from 5.1 %. The accommodative stance is to continue with an aim to nurture a growth expectation of 9.5 for FY  2022  a robust target of 17.2% next year. Jyoti Prakash Gadia, Managing Director, Resurgent India

    12:02 (IST)06 Aug 2021
    Lower rates will go a long way to help real estate sector

    The recovery in real-estate has been on a growth trajectory and with RBI keeping its stance the same and with no rate hike, it will improve the sentiment further. The festival season is the make and breaks for the residential real-estate and some rate cut no doubt would have sent a strong signal to the investors and buyers, but unchanged rates is also a welcome step for the developers. With the overall growth being lower across sectors and inflation at a higher-end, lower rates will go a long way to help a sector that is the powerhouse for employment generation. Honeyy Katiyal, Founder of Investors Clinic

    12:00 (IST)06 Aug 2021
    Indian economy in a much better position now

    The RBI governor said that the Indian economy was in a much better position now than during the Jun '21 meeting. However, the committee can't drop their guard and must remain vigilant against the third wave. Some high-frequency indicators have gained momentum in the Jun-Jul period. Outlook for aggregate demand has been improving but underlying conditions are still weak. CPI inflation is projected at 5.7 percent during FY22. The projection for India’s real GDP is maintained at 9.5 percent for FY22. Heena Naik, Research Analyst - Currency, Angel Broking

    11:53 (IST)06 Aug 2021
    RBI raises retail inflation projection for FY22 to 5.7 pc

    The Reserve Bank of India (RBI) on Friday decided to keep benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance as the economy is yet to recover from the impact of second COVID wave. This is the seventh time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained status quo. RBI had last revised its policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.

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    11:51 (IST)06 Aug 2021
    Regular home buyer would take advantage of low interest rates prevailing now

    With economic recovery on a positive note following a second wave of Covid 19, growth needs to be carefully nurtured in the context of a relaxation in economic activities. This can be done by giving a fillip to the economy by incentivizing real estate. For this to happen, we expected a cut in rates which would have sent positive signals to economic and real estate players. Not only would the cuts have bolstered greater demand for homes as the interest regime would have been lower, there would have been greater infusion of capital in the market, enabling easier supply-demand transactions. The regular home buyer would ofcourse take advantage of low interest rates prevailing now, but the overall demand in the real estate sector at a holistic level would have gone up further, thus giving a fillip to the economy. Ramani Sastri - Chairman & MD, Sterling Developers

    11:41 (IST)06 Aug 2021
    RBI MPC decision will help sustain liquidity for some period

    RBI maintaining status quo on key policy rates was expected given the inflationary concerns in recent months. The low-interest rates for the last few months have already given a boost to the real estate sector upticking the demand in the last few quarters and enhancing the confidence of the homebuyers. The decision will help to sustain liquidity for some period as we are already witnessing the derailment of economic momentum due to the Covid-19 pandemic and lockdowns in different parts of the country. It will also help in sustaining economic stability as well as keep the real estate sector stay afloat during these unprecedented times. Shraddha Kedia-Agarwal, Director, Transcon Developers

    11:29 (IST)06 Aug 2021
    Demand for homes now likely to gain momentum going into upcoming festive season

    The RBI's approach to continue with a 'wait and watch' mode is on expected lines to enable the growth momentum that seems to have set in during the last 2 months. With the Covid uncertainty looming, this seems to be a prudent move to allow growth to firmly set it. This has allowed for all-time historic low home loan rates which have played a significant role in reviving the housing demand as compared to the pre-Covid era. The pent-up demand, the opening of economic activities, and continuous Government interventions have also helped in lifting the market sentiments. We feel that the demand for homes will now gain momentum going into the upcoming festive season. Cherag Ramakrishnan, Managing Director, CR Realty

    11:21 (IST)06 Aug 2021
    Time is ripe for RBI, Govt to undertake more valiant demand stimulant measures

    In addition to this monetary policy intervention, the time is ripe for the RBI and Government to undertake more valiant demand stimulant measures to help the economy to cross FY20 GDP levels and ensure a broad-based revival. The lower interest rate environment and demand stimulant measures from Government coupled with the on-going vaccinations is likely to encourage businesses and consumers to avail credit to expand their business or fulfill consumption requirements, thereby stimulating the economy. Shishir Baijal, Chairman & Managing Director, Knight Frank India

    11:20 (IST)06 Aug 2021
    Extended period of historic low interest rates would ensure home loan rates remain at current benign levels

    We welcome the RBI’s unchanged view on the ‘accommodative’ stance and commitment to maintaining the liquidity in the economy. Despite the inflationary pressures, RBI maintaining status quo on key policy interest rates and continuing with growth supportive policy stance was need of the hour. Extended period of historic low interest rates would ensure home loan rates remain at current benign levels and aid the revival of real estate sector. We have also seen many real estate developers refinancing their borrowings at lower interest cost and benefit from the lower interest rate regime, which is crucial at this juncture when business operations are facing the pandemic pressure. Shishir Baijal, Chairman & Managing Director, Knight Frank India

    11:15 (IST)06 Aug 2021
    A rate cut would have made a world of difference for the end consumer, investor

    A rate cut have made a world of difference for the end consumer as well as the investor. We would also like to see measures to enhance demand in the real estate sector by lowering of stamp duty and registration charges in the near future. While the impact of Covid 19 has been high on specific segments, the luxury and second home sentiment has not been impacted as much. The perception of lifestyle has changed in response to the new reality which is driving demand for premium properties. The luxury housing segment has remained largely insulated from the slowdown because the market is driven by end users at the top of the pyramid who have not been deeply impacted unlike other housing categories, where they had to defer purchase decisions. Lincoln Bennet Rodrigues, Founder and Chairman, Bennet & Bernard Group

    11:13 (IST)06 Aug 2021
    It's high time that banks pass on the benefits to the homebuyers

    On an expected line, the monetary policy committee (MPC) has kept the repo rate unchanged with an extended accommodative stance for the seventh consecutive time that will continue to serve the marketswell. The prevailing low home loan rates are already enticing for homebuyers. It's high time the banks need to pass on the benefits to the homebuyers. With the interest rates at a record low, the Government will continue taking affirmative measures as long as it is necessary to revive the economy and alleviate Covid-19 impact. Bhushan Nemlekar, Director, Sumit Woods

    11:12 (IST)06 Aug 2021
    Banks should now further sweeten the lending rates

    The RBI and especially the MPC are to be commended for maintaining an accommodative stance for the seventh consecutive time now. Their approach towards tackling the situation created by the pandemic and steps taken to help revive the economy will go down in history as being one of the finest. The reduction in stamp duty charges in some parts of the country along with the all-time low housing loan rates have given the much-required fillip to sales activity in the last few quarters. The expectation amongst stakeholders of the industry is that the banks should now further sweeten the lending rates, at least till such time that the economy gets back to the pre-COVID levels. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory

    11:07 (IST)06 Aug 2021
    Buyers are coming back to market; upcoming festive season will be a lot better than the previous years

    We welcome the RBI's decision to continue with their accommodative stance. We urge the Central Government to address the deteriorating health of MSMEs and various other sectors which have been severely impacted by the second wave of the pandemic and are still struggling to get back on track. The low interest rates have been a crucial factor in the revival of the demand in the real estate sector. The buyers are already coming back to the market and we feel that the upcoming festive season will be a lot better than the previous years. Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty, Secretary, CREDAI MCHI

    11:02 (IST)06 Aug 2021
    RBI's assurance to conduct OMOs when needed would help keep bond yields in check

    In an expected move, MPC kept the rates unchanged and continued with the accommodative stance. Though the MPC voted unanimously to keep the rates unchanged, votes for the continuance of accommodative stance were at 5:1. It shows that the inflation debate is getting more prominent. The forecast of inflation rate for FY22 was revised upwards to 5.7 per cent from 5.1 per cent announced earlier. RBI's assurance to conduct OMOs when needed would help to keep the bond yields in check. Deepthi Mathew, Economist at Geojit Financial Services

    11:00 (IST)06 Aug 2021
    RBI monetary policy announcements was on expected lines

    The monetary policy announcements came exactly on expected lines - continuation of the accommodative monetary stance, status quo in policy rates, maintaining the FY GDP at 9.5% and upward revision in FY 22 CPI inflation rates. The upward revision in CPI inflation rate to 5.7% from 5.1% earlier reflects the higher inflation prints in recent months. But the MPC believes that the higher inflation trend is transitory since it is caused by supply-side constraints. The Governor again reiterated that the RBI's priority would be "to promote growth within the framework of financial stability". The RBI is rightly concerned that any departure from the present pro-growth monetary policy may " kill the nascent and hesitant recovery. " The communication from the central bank augurs well for the continuation of the growth impulses in the economy. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

    10:57 (IST)06 Aug 2021
    RBI continues to tilt in favour of growth versus inflation

    The status quo retained by the RBI signals a desire to continue stimulating growth. However, with the indicators of inflation now beginning to come through, how long this stance can be maintained is something that will need to be watched. The good thing is that the RBI continues to tilt in favour of growth versus inflation, some of which might be good for the economy. It also hints at a possibility of looking at a more accommodative stance in the longer term so that the economic recovery can be sustained. Given the demand for metals globally, there is a possibility that some of the short-term inflationary risks can be mitigated by higher inflows of foreign exchange through exports so that the fiscal deficit is suitably managed and this needed too much pressure on the currency on account of inflation. D.R.E Reddy, CEO and Managing Partner, CRCL LLP

    10:56 (IST)06 Aug 2021
    Invest in bond funds with less than 3 yrs maturity to minimise interest rate risk

    RBI policy is hawkish at the margin. RBI has acknowledged the strong growth and negative surprise on inflation front. One of the MPC members has voted for change in accommodative stance. While there is no real change in the policy, bond market participants will take the nuanced change in language seriously. There is a distinct possibility that yields at the longer end, 10 years, will inch up towards 6.50% gradually. Investors should invest in bond funds with lesser than 3 years maturity to minimise interest rate risk. Sandeep Bagla, CEO- TRUST AMC

    10:54 (IST)06 Aug 2021
    RBI holds interest rates, retains GDP growth target

    The Monetary Policy Committee (MPC) has decided to maintain status quo and keep interest rates unchanged. Currently, the repo rate is 4 percent and reverse repo rate is 3.35 percent. Reserve Bank of India (RBI) Governor Shaktikanta Das said the policy stance continues to be “accommodative”. The growth rates for GDP remains real GDP growth unchanged at 9.5% for FY22 and the economy in much better position compared to the previous quarter. Despite inflation higher at 5.7% v/s 5.1% the continuous monetary, fiscal and accommodative stance indicates a dovish policy and we remain positive for the markets in the medium term. Vikas Jain, Senior Research Analyst at Reliance Securities

    10:49 (IST)06 Aug 2021
    LIBOR transition: Export credit in Foreign Currency and Restructuring of Derivative Contracts

    RBI has decided to amend the guidelines related to (i) export credit in foreign currency and (ii) restructuring of derivative contracts. Banks will be permitted to extend export credit in foreign currency using any other widely accepted Alternative Reference Rate in the currency concerned. Since the change in reference rate from LIBOR is a "force majeure" event, banks are also being advised that change in reference rate from LIBOR/ LIBOR related benchmarks to an Alternative Reference Rate will not be treated as restructuring

    10:48 (IST)06 Aug 2021
    Marginal Standing Facility (MSF): Extension in period of relaxation

    To provide comfort to banks on their liquidity requirements, including meeting their Liquidity Coverage Ratio (LCR) requirement, this relaxation which is currently available till September 30, 2021 is being extended for a further period of three months, i.e., up to December 31, 2021.

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