The Reserve Bank of India has introduced its new Monetary Policy for fiscal 2021-2022 on Wednesday. It was announced by the RBI Governor Shaktikanta Das at a press conference, after a three-day-long meeting. We breakdown what it was all about and the key takeaways from it.
Why is the policy important?
The new monetary policy by the RBI is seen by many economists as an indispensable measure to help the economy fight the second charge of the pandemic. The Indian economy had recorded negative growth in decades, in the last financial year.
READ ALSO: What the FAQ: Taller than Eiffel Tower, India completes arch of the world's highest rail bridge. Here's all about it
What is there in the new policy?
The deadline of Targeted Long Term Repo Operations (TLTRO) was extended to September 30 from March 31. Banks can now accept deposits of Rs 2 lakh from individuals. Earlier, it was Rs 1 Lakh. Apart from that, RTGS and NEFT will be extended to entities other than banks. Also, the RBI announced the introduction of a Financial inclusion index to measure the level of financial inclusion, which will be published every July.
Can the Indian economy ever recover?
Answering the questions at the press conference, the RBI governor says that an efficient vaccine distribution is key to the recovery of the economy. Das also said that the vaccine distribution has strengthened the Financial Year 2021-22.
