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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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Journalist arrested for remarks against Chhatrapati Shivaji Maharaj and son

Journalist Prashant Koratkar, accused of making offensive remarks about Chhatrapati Shivaji Maharaj and Chhatrapati Sambhaji, has been arrested in Telangana and is being brought to Kolhapur.

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Chhatrapati Shivaji Maharaj

Maharashtra police have arrested journalist Prashant Koratkar in Telangana for allegedly making derogatory remarks about 17th-century Maratha ruler Chhatrapati Shivaji Maharaj and his son, Chhatrapati Sambhaji. The arrest follows widespread outrage over a viral audio clip and legal proceedings that culminated in the rejection of his anticipatory bail.

Arrest follows legal battle and public outrage

According to police, Koratkar was taken into custody in Telangana and is being brought to Kolhapur for further legal procedures. Kolhapur Superintendent of Police Mahendra Pandit confirmed the development, stating that the journalist will now face the legal process in Maharashtra.

The case stems from an audio conversation between Koratkar and Kolhapur-based historian Indrajeet Sawant, in which Koratkar allegedly made objectionable remarks. The recording, shared by Sawant on social media, sparked strong public backlash and demands for Koratkar’s arrest.

Koratkar was initially booked on February 26 under the Bharatiya Nyaya Sanhita provisions for promoting enmity between groups. Despite being granted interim protection from arrest by a sessions court until March 1, the Kolhapur police challenged the decision in the Bombay High Court, seeking cancellation of the relief.

On March 18, Additional Sessions Judge D V Kashyap in Kolhapur rejected Koratkar’s anticipatory bail plea. In his defense, Koratkar claimed his phone was hacked and the viral audio was doctored. He also issued a public apology and alleged that the audio was released with the intent to stir communal tension.

Maharashtra CM denies police inaction

Amid political criticism, Maharashtra Chief Minister Devendra Fadnavis dismissed claims that police were shielding Koratkar, who hails from his hometown of Nagpur. Fadnavis asserted that law enforcement was actively pursuing the case and would take action wherever Koratkar was found.

With his arrest now confirmed, Koratkar will face further legal proceedings in Kolhapur as authorities continue their investigation.

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Kunal Kamra breaks silence on gaddar controversy, says no regrets, no apology unless court directs

Comedian Kunal Kamra has said he won’t apologise for his ‘gaddar’ remark unless directed by the court. Amid the controversy, his Mumbai studio was vandalised by Shiv Sena workers and later demolished.

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Kunal Kamra, Gaddar remark, Eknath Shinde, Devendra Fadnavis, Habitat Studio, Mumbai vandalism, Shiv Sena, Maharashtra politics, freedom of speech, political comedy, Kamra controversy

Stand-up comedian Kunal Kamra has told Mumbai Police that he has no regrets about his controversial ‘gaddar’ (traitor) remark, which was reportedly aimed at Maharashtra Deputy Chief Minister Eknath Shinde, and made it clear that he would apologise only if court directed him to do so. This comes after Maharashtra government’s mounting pressure and Chief Minister Devendra Fadnavis’ apology demand.

Speaking to police from Tamil Nadu, Kamra also denied allegations of being paid by the opposition to target Shinde and offered full access to his financial records to prove his stand, sources revealed.

The controversy escalated further after Kamra’s Mumbai-based comedy studio, Habitat Studio, was vandalised by Shiv Sena (Shinde faction) workers on Sunday night, hours later the BMC demolished the studio citing an unspecified violation. Video footage showed a mob damaging property, throwing chairs, and burning Kamra’s photo outside a police station in Thane. All 11 accused were granted bail shortly after the incident.

Habitat Studio distances itself from Kamra’s remarks

The studio, which hosted the controversial episode of India’s Got Latent featuring Kamra, stated that it cannot be held responsible for comments made by performers. It announced a temporary shutdown, citing safety concerns and the need to evaluate how to promote free speech without endangering property and staff.

The term ‘gaddar’, used by Kamra, has been interpreted as a reference to Eknath Shinde, whose 2022 rebellion split the Shiv Sena and led to the fall of the Uddhav Thackeray-led government, paving the way for the BJP-Shinde alliance.

While BJP leaders filed multiple complaints against Kamra, Uddhav Thackeray’s faction hit back. Aaditya Thackeray called Shinde an “insecure coward,” and Priyanka Chaturvedi highlighted that Kamra never explicitly named anyone in his joke. Questioning the intolerance toward comedy and criticism, she said that their vandalism shows that there is truth in the joke.

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MPs’ salary hiked to Rs 1.24 lakh per month, allowances and pension revised

The Indian government has increased the monthly salary of MPs to Rs 1.24 lakh and revised various allowances and pensions, citing inflation and cost-of-living adjustments.

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Indian Parliament building with lawmakers during session

In a significant move, Members of Parliament (MPs) will now draw a monthly salary of Rs 1.24 lakh, marking a notable increase from the previous base salary of Rs 1 lakh. This decision comes amid the ongoing Budget Session of Parliament and marks the first revision in their remuneration since April 2018.

According to a recent government notification, several components of MPs’ remuneration packages have been revised, including allowances and pensions.

Allowances and perks revised

As per the 2018 structure, MPs were entitled to Rs 70,000 per month as constituency allowance and Rs 60,000 per month as office allowance. They also received Rs 2,000 as daily allowance during Parliamentary sessions. These figures are now set to increase in line with the salary hike.

The revision also brings an increase in additional pension for long-serving MPs. The earlier provision of Rs 2,000 per year of service beyond five years has now been raised to Rs 2,500 per year.

MPs are further entitled to a range of benefits including:

  • Annual allowance for phone and internet usage
  • 34 free domestic air tickets per year for themselves and their families
  • Unlimited first-class rail travel for both personal and professional use
  • Mileage allowance for road travel
  • 50,000 units of free electricity annually
  • 4,000 kilolitres of free water every year

The government also continues to provide rent-free housing in New Delhi during the five-year term of MPs. Based on their seniority, they may be allotted hostel rooms, apartments or bungalows. Those opting out of official housing are eligible for a monthly housing allowance.

The salary and perks revision has been justified on the grounds of adjusting for inflation and the rising cost of living, ensuring that MPs’ remuneration remains aligned with contemporary economic conditions.

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