ICICI Bank-Videocon loan case: RBI says law will take its own course

The Reserve Bank of India (RBI) earlier today cut repo rate by 25 bps to 6.25 per cent in its sixth bi-monthly monetary policy statement for 2018-19.

In its first reaction on the ICICI Bank-Videocon loan case, Reserve Bank of India (RBI) on Thursday said that law enforcement agencies would take appropriate action in the case. “If there are certain things which require investigation, that is in the domain of the investigating agencies and it’s for them to take further action,” news agency PTI reported citing RBI Governor Shaktikanta Das in the customary post-policy press conference.

The news agency also quoted him saying that the regulator’s role is restricted to overseeing the violations of its regulations by individuals or groups, and act on the same. A few days back, CBI filed an FIR naming former MD & CEO Chanda Kochhar and others in the alleged quid pro quo in extending a Rs 3,250-crore loan to the Videocon Group.

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The Reserve Bank of India (RBI) earlier today cut repo rate by 25 bps to 6.25 per cent in its sixth bi-monthly monetary policy statement for 2018-19. The Monetary Policy Committee (MPC) has also unanimously voted to change the policy stance to ‘neutral’.

“On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to: • reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 6.5 per cent to 6.25 per cent with immediate effect,” RBI said in a statement.

The reverse repo rate under the LAF stands adjusted to 6.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.5 per cent. The MPC also decided to change the monetary policy stance from calibrated tightening to neutral.