Published: Fri, April 06, 2018
Finance | By Cynthia Curry

RBI monetary policy: Highlights for the financial year 19

RBI monetary policy: Highlights for the financial year 19

RBI issued its first warning in December 2013, a second in February 2017 and the most recent in December 2017.

Rajesh Shah, Ficci President, said: "While the Reserve Bank of India has maintained status quo in current monetary policy statement, we hope that RBI will soon consider cut in policy rate and give a further boost to demand and investments". The "wholesale" variant of CBDC limits its use to financial institutions and markets, as opposed to a "retail CBDC" for the general public.

"We have now made a decision to fence RBI-regulated entities from the risk of dealing with entities associated with virtual currencies".

The RBI has been highly critical of cryptocurrencies including bitcoin in the past. Yes Bank managing director Rana Kapoor said, "the growth baton is now firmly in government's hands as it is actively facilitating the revival of private investments". It will issue detailed guidelines in the next few days.

"Technological innovations, including those underlying virtual currencies, have the potential to improve the efficiency and inclusiveness of the financial system. Industrial activity has rebounded and become broad based while services sector has showed resilience and expanded throughout the year", said Urjit Patel, governor, RBI, which has projected a GDP growth of 7.4 per cent in FY19.

In the Budget speech on February 1, Jaitley had said that cryptocurrencies are not legal and affirmed to eliminate their usage, resulting in what is reported as a "chill" in the trading activity.

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The decision came on back of the RBI's observation that only certain payment system operators and their outsourcing partners in the country store the payment system data.

The directive is aimed at having "unfettered access to all payment data for supervisory purposes", the central bank said.

Mumbai: The Reserve Bank of India (RBI) on Thursday estimated that the real Gross Domestic Product (GDP) growth for FY19 will range from 7.4 to 7.9 percent.

"It is unclear at this stage whether this requirement will extend to only licensed entities (such as wallet issuers) or also apply to the payment gateways and intermediaries".

On the liquidity in the system, another deputy governor Viral Acharya said the surplus, built up following note ban and forex inflows until last August, continued to decline over the last six months with corresponding rise in currency in circulation.

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