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RBI cuts repo rate by 0.25% to bring it to 5.15%, reverse repo rate at 4.9%; fifth cut this year

The Reserve Bank of India cut its repo rate by 25 basis points to 5.15 percent, the fifth cut this year, in a bid to boost the flow of credit and reverse economic slowdown.

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RBI Governor Shaktikanta

[vc_row][vc_column][vc_column_text]The Reserve Bank of India (RBI) today – Friday, Oct 4 – cut its repo rate by 25 basis points to 5.15 percent, the fifth time this year, in a bid to boost the flow of credit and reverse economic slowdown. [/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1570179377756{border-top-width: 10px !important;border-right-width: 10px !important;border-bottom-width: 10px !important;border-left-width: 10px !important;padding-top: 10px !important;padding-right: 10px !important;padding-bottom: 10px !important;padding-left: 10px !important;background-color: #b2b2b2 !important;border-radius: 10px !important;}”]Repo rate is the rate of interest at which the RBI lends money to commercial banks, reverse repo rate is the rate at which it borrows. 

One basis point is a hundredth of a percentage point and 25 basis points means 0.25%.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]The central bank also decided to continue with an accommodative stance “as long as it is necessary” to revive growth, while ensuring inflation remains within the target.

All members of the six-member Monetary Policy Committee (MPC), that met on October 4 to review interest rates, voted to reduce the policy rate, the RBI said.

With this cut, the repo rate, which serves as the MPC’s policy rate, has been reduced for the fifth consecutive time this year, the total coming to 135 basis points. Lower interest rates are expected to make home and vehicle loans cheaper. However, banks have passed on only a fraction of these cuts so far, said reports.

The MPC meeting comes in the backdrop of RBI’s mandate to banks to link their loan products to an external benchmark, like repo rate, for faster transmission of reduction in policy rates to borrowers, from October 1.

The MPC also sharply reduced its growth forecast for the fiscal year 2019-2020 to 6.1% from 6.9% earlier. The committee noted that risks to growth have emerged due to weak domestic demand and sagging export prospects on account of continuing trade tensions. MPC on the other hand retained its consumer price inflation forecast for the second half of the fiscal year 2019-202 as expected at 3.5%-3.7%

The RBI said that while these measures are likely to help strengthen private consumption and spur private investment activity, the continuing slowdown warrants intensified efforts to restore the growth momentum.

The Indian economy grew at the pace of just 5 percent in the June-ended quarter, it’s slowest since 2013. This triggered a slew of measures by the government and the central bank in past few months, including a corporate tax rate cut and setting up loan melas to encourage fresh investments.

Inflation has remained well within the MPC’s target of 4 percent for the past 13 months, giving room for the central bank to respond with policy rate cuts.

“With inflation expected to remain below target in the remaining period of 2019-20 and first quarter of 2020-21, there is policy space to address these growth concerns by reinvigorating domestic demand within the flexible inflation targeting mandate,” RBI said.

The MPC was largely expected to vote in the favour of a rate cut and back government’s efforts to address the current economic slowdown.

The MPC is next scheduled to meet during December 3-5, 2019.

The announcements from the six-member Monetary Policy Committee (MPC) came after a three-day meeting. The rate cut comes at a time when the Indian economy is facing its worst slowdown since the dip in economic activity following the global financial crisis of 2008-09.[/vc_column_text][/vc_column][/vc_row]

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Assam floods death toll rises to 95; over 1.6 lakh affected, 14 districts on high alert

Assam’s flood death toll has climbed to 95 after six more fatalities were reported. More than 1.6 lakh people have been affected, while 14 districts remain on high alert as relief operations continue.

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The flood situation in Assam remained critical on Wednesday after six more people lost their lives over the past 24 hours, taking the death toll during this year’s monsoon season to 95.

According to the state’s Disaster Reporting and Information Management System (DRIMS), widespread flooding continues to affect rural and urban areas, with more than 1.6 lakh people impacted across 563 villages.

Of the six latest deaths, five were linked to the general flood situation. Two fatalities each were reported from Biswanath and Sivasagar districts, while one person died in Golaghat. Another person lost their life due to urban flooding in the Mayong revenue circle of Morigaon district. One person has also been reported missing in Udalguri district.

The Dhansiri (South) river at Numaligarh continues to flow above the danger level, prompting authorities to keep 14 districts on high alert. These districts are Golaghat, Lakhimpur, Charaideo, Sivasagar, Biswanath, Dhemaji, Kamrup (M), Jorhat, Sonitpur, Tinsukia, Nagaon, Darrang, Karbi Anglong and Udalguri.

Sivasagar remains the worst-hit district

Among the affected areas, Sivasagar has recorded the highest number of affected residents, with more than 57,000 people impacted. Golaghat and Jorhat are the next worst-affected districts.

Floodwaters have also caused significant damage to infrastructure. According to DRIMS, seven major embankment breaches have been reported, including five in Biswanath at Brahmajan and two in Darrang’s Mangaldoi area. A steel bridge at Cholapothar in Charaideo and a footbridge in Tangla, Udalguri, have also sustained damage.

Agricultural losses have mounted as nearly 16,951 hectares of cropland remain submerged. The floods have also affected more than 35,000 livestock, while around 8,500 animals, mostly in Sivasagar district, have been washed away.

Urban flooding disrupts normal life

Urban flooding continues to affect Kamrup, Kamrup (M), Morigaon and Jorhat districts, impacting 734 people.

In Kamrup (M), State Disaster Response Force (SDRF) and District Disaster Response Force (DDRF) personnel used boats to evacuate 80 people from waterlogged localities, including Satgaon and Hatigaon. Partial waterlogging continues to disrupt daily life in Guwahati’s Juripar and Anil Nagar areas.

The state government has stepped up relief measures by operating 45 relief camps, where 12,356 people are currently taking shelter. Another 59 relief distribution centres are supplying essential items, including rice, dal, salt and cattle feed, to more than 32,000 people.

Authorities are continuing to monitor river levels as the meteorological department has forecast more rainfall in the catchment areas, raising concerns that the flood situation could worsen further.

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Air India turbulence injures 17 on Phuket-Delhi flight, crew suffer spinal injuries, says Minister

Severe turbulence on Air India flight AI2379 from Phuket to Delhi injured 17 people. Four cabin crew members remain under treatment as the DGCA investigates.

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Air India

Seventeen people were injured after an Air India flight travelling from Phuket to Delhi encountered severe turbulence, with Civil Aviation Minister Ram Mohan Naidu saying the disturbance lasted for nearly five minutes. Authorities have launched an investigation into the incident, while four cabin crew members continue to receive medical treatment.

The Airbus A320neo operating flight AI2379 was carrying 137 passengers and eight crew members when it experienced severe turbulence around an hour before landing in Delhi.

According to the minister, passengers recalled that the turbulence lasted between four and five minutes, during which those injured faced significant difficulty inside the aircraft.

Four crew members remain under medical care

The minister said some of the injured cabin crew sustained spinal injuries near the neck and tailbone. Doctors have advised continued medical observation for the affected crew members.

Air India confirmed that all 13 passengers admitted to hospital following the incident have now been discharged. However, four cabin crew members continue to receive treatment.

The airline said its teams remain at the hospitals to support the injured crew members and assist affected passengers and their families.

Medical teams responded immediately after landing

According to the Civil Aviation Minister, medical teams were deployed as soon as the aircraft landed in Delhi.

Passengers received first aid at the airport, while those requiring further medical attention were shifted to Medanta and Fortis hospitals.

The minister also praised the cabin crew, saying they continued assisting passengers for nearly an hour after sustaining injuries until the aircraft landed safely.

DGCA analysing cockpit voice and flight data recorders

The incident is being investigated by the Directorate General of Civil Aviation (DGCA).

According to the minister, the aircraft has been moved to a separate hangar, while investigators are examining both the cockpit voice recorder (CVR) and flight data recorder (FDR) to determine what caused the severe turbulence.

He said the findings will be made public once the investigation is completed.

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Over 43 lakh names removed from Jharkhand draft voter rolls after special revision

The Election Commission has released Jharkhand’s draft electoral rolls after the Special Intensive Revision, with over 43 lakh names removed and 83.51% of registered voters submitting enumeration forms.

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The Election Commission on Wednesday published the draft electoral rolls for Jharkhand following the completion of the enumeration phase of the Special Intensive Revision (SIR), with more than 43 lakh names removed from the voter list.

Jharkhand Chief Electoral Officer (CEO) K Ravi Kumar said the state had 2,64,63,236 registered voters before the Special Intensive Revision exercise began. Following the completion of the enumeration process, the draft electoral roll now contains 2,21,01,249 electors.

According to the CEO, 2,21,01,249 electors, or 83.51 per cent of the total registered voters, submitted their enumeration forms by July 29, reflecting strong participation in the revision exercise.

Door-to-door verification conducted during revision exercise

The enumeration exercise for the Special Intensive Revision began on June 30 and continued until July 29. During this period, Booth Level Officers (BLOs) carried out door-to-door visits to distribute, collect and verify enumeration forms submitted by eligible voters.

Why over 43 lakh names were removed

A total of 43,61,987 names were deleted from the draft electoral rolls after being identified under the Absent, Shifted, Dead or Duplicate (ASDD) category.

The CEO said the deleted names include:

  • 7.63 lakh voters who had died.
  • 15.92 lakh voters who had permanently shifted.
  • 14.50 lakh voters who were untraceable or remained absent during the verification exercise.
  • 4.38 lakh voters whose names were found registered at multiple locations.

In addition, around 1.16 lakh voters refused to sign the enumeration forms and did not return the completed forms to Booth Level Officers during the enumeration phase, the CEO added.

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