RBI offers on-tap TLTRO worth Rs 1 lakh crore, OMOs for state bonds to keep lid on yields

Improving liquidity through TLTRO/OMOApprox Read Time: 6 min In News: While keeping the key policy rates unchanged, the RBI has announced various measures to bring more liquidity in the financial markets, keep bond yields under control, and improve availability of debt to specific sectors. Improving liquidity through TLTRO/OMO Measures announced: On-tap TLTRO to improve liquidity:The RBI has introduced on-tap targeted long-term repo operations (TLTRO) of Rs 1 lakh crore for providing additional…

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Economic Updates: RBI accepts Kamath panel report on relief to 26 sectors

Kamath Committee’s RecommendationsApprox Read Time: 4 min In News: The Reserve Bank of India (RBI) on 4th Sept set up a 5-member expert committee under banker K V Kamath to suggest financial parameters for resolution of corona related stressed assets. News Summary: While the six-month moratorium on loan repayments ended on August 31, the RBI has allowed banks to recast loans which were classified as standard as on March 1, 2020.Banks have already…

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Economic Bytes: RBI slashes key rate 40 basis pts to new all-time low

RBI slashes key rate 40 basis pts to new all-time lowApprox Read Time: 6 minutes RBI slashes key rate 40 basis pts to new all-time low In News: RBI slashes key rate 40 basis pts to new all-time low The Monetary Policy Committee (MPC) of the RBI has reduced its key policy rates to stabilize the financial system and deal with the negative economic impact of the ongoing nationwide lockdown.…

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Economic Bytes: 3 lakh crore emergency credit line for MSMEs

3 lakh crore emergency credit line for MSMEsApprox Read Time: 6 minutes 3 lakh crore emergency credit line for MSMEs In News: The Union Cabinet has approved an additional funding of up to Rs 3 lakh crore through the Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector hit hard by the coronavirus crisis. For this purpose, a corpus of Rs 41,600 crore shall be provided by the central…

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Economic Updates: RBI receives poor response for first auction under TLTRO 2.0

RBI receives poor response for first auction under TLTRO 2.0Approx Read Time: 6 minutes In News: RBI receives poor response for first auction under TLTRO 2.0 The Reserve Bank of India (RBI) recently conducted the first auction under the Targeted Long Term Repo Operation (TLTRO) 2.0 for Rs 25,000 crore with a 3-year tenor and received total bids amounting to Rs 12,850 crore, implying a poor response with a bid…

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Economy Updates: RBI to pump in Rs 1 lakh crore

RBI to pump in Rs 1 lakh croreApprox Read Time: 5 minutes RBI to pump in Rs 1 lakh crore In News: RBI to pump in Rs 1 lakh crore Reserve Bank of India has unveiled the second round of policy announcements to counter the debilitating effects of the spread of Covid-19 on the Indian economy. Earlier Measures: On March 27, the RBI had announced a measures to counter the…

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RBI is trying to reduce pandemic stress

RBI aiding fight against COVID-19Approx Read Time: 6 minutes In News: RBI aiding fight against COVID-19 Amid the lockdown caused by the COVID-19 outbreak, the Reserve Bank of India has used a variety of weapons to counter the distress due to the sudden and sharp destruction of demand. Aim: The measures are aimed at buying time for the government to deal with the coronavirus crisis by preventing stressed borrowers from…

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Explaining: Economic Survey 2019-20

Economic Survey 2019-20Approx Read Time: 25 minutes What is the Economic Survey? The Economic Survey is a report the government presents on the state of the economy in the past one year, the key challenges it anticipates, and their possible solutions. The document is prepared by the Economic Division of the Department of Economic Affairs (DEA) under the guidance of the Chief Economic Advisor.Once prepared, the Survey is approved by…

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