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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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Supreme Court stays defamation case against Rahul Gandhi over PM Modi remarks

The Supreme Court has temporarily halted trial court proceedings in the criminal defamation case against Rahul Gandhi over his alleged remarks concerning Prime Minister Narendra Modi. The court has issued notices seeking responses within four weeks.

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Rahul Gandhi

The Supreme Court has stayed further proceedings before the trial court in a criminal defamation case against Congress leader Rahul Gandhi over his alleged remarks concerning Prime Minister Narendra Modi.

A bench comprising Justices Vikram Nath and Aparesh Kumar Singh issued notices to the Maharashtra government and the complainant, seeking their responses within four weeks. The order provides interim relief to Gandhi while the Supreme Court considers his challenge to an earlier Bombay High Court decision.

The case concerns remarks allegedly made by Gandhi in 2018. A magistrate’s order dated August 28, 2019, initiated proceedings against him in the criminal defamation case. The Supreme Court’s latest order temporarily pauses the trial court proceedings; it does not amount to a final ruling on the allegations.

Why Rahul Gandhi approached the Supreme Court

Gandhi challenged the Bombay High Court’s September 8 order, which declined to quash the summons issued against him in the criminal defamation case.

The complaint was filed by Maharashtra-based BJP member Mahesh Shrishrimal before a magistrate court in Girgaum, Mumbai. The complaint concerns remarks Gandhi allegedly made about Prime Minister Narendra Modi during a public address in Rajasthan on September 20, 2018.

The complainant alleged that Gandhi’s remarks were defamatory and affected the reputation of the Prime Minister and BJP members. These remain allegations and have not been established by a final court judgment. These are allegations in the complaint, rather than findings established by a final court judgment.

Gandhi had sought to have the criminal proceedings quashed, challenging the maintainability of the complaint and the complainant’s standing to bring the case.

What the Bombay High Court had ruled

On September 8, the Bombay High Court rejected Gandhi’s plea to quash the criminal defamation proceedings.

The Bombay High Court rejected Gandhi’s plea to quash the proceedings, holding that the complaint could not be dismissed at that stage merely on the ground that the complainant was a BJP member. It observed that whether the alleged remarks were directed solely at the Prime Minister or could also affect members of the party would require examination during the trial.

The High Court’s decision allowed the proceedings to remain in place, although it had earlier provided temporary protection to Gandhi to enable him to approach the Supreme Court.

What happens next

The Supreme Court has now stayed further proceedings before the trial court and sought responses from the Maharashtra government and Mahesh Shrishrimal within four weeks.

The Supreme Court has sought responses within four weeks. The next hearing date should be included only if it has been confirmed by the court or the reference report. The interim stay pauses the trial court process while the Supreme Court considers Gandhi’s challenge to the High Court’s order.

The latest development does not determine whether the alleged remarks amount to criminal defamation. That issue remains subject to the legal proceedings.

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CJP claims Saurav Das, Ashutosh Ranka detained at Jantar Mantar

The Cockroach Janta Party (CJP) claimed that leaders Saurav Das and Ashutosh Ranka were detained by Delhi Police during a protest at Jantar Mantar against Chief Election Commissioner Gyanesh Kumar.

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Saurabh Das Ashutosh Ranka

The Cockroach Janta Party (CJP) claimed on Tuesday, October 13, that its leaders Saurav Das and Ashutosh Ranka had been detained during a protest in Delhi against Chief Election Commissioner Gyanesh Kumar. The party said its members had reached the protest site carrying the national flag.

The CJP has been organising protests against alleged irregularities in the Special Intensive Revision (SIR) of electoral rolls. The party has demanded accountability from the Election Commission and the resignation of the Chief Election Commissioner.

CJP founder Abhijeet Dipke said that Saurav Das, Ashutosh Ranka and other party members had been detained, according to the party’s account.

Dipke criticised the restrictions on protests, saying that resistance could not be stopped by changing the status of a designated protest venue.

Why the CJP is protesting

The CJP has been protesting against Chief Election Commissioner Gyanesh Kumar over alleged irregularities in the voter-roll revision exercise. The party has raised concerns about the deletion and alleged manipulation of voters’ names. These claims remain allegations and should not be treated as independently established findings.

Earlier detention of CJP leaders

The latest reported detentions follow an earlier incident involving CJP founder Abhijeet Dipke and leaders Saurav Das and Ashutosh Ranka. The three were detained at Delhi’s Indira Gandhi International Airport on October 10 ahead of the planned Jantar Mantar demonstration.

According to related reporting, the three CJP leaders were released on October 11 following proceedings before an executive magistrate after furnishing a surety bond for maintaining peace and good behaviour for one year.

The CJP’s claims come amid its protests against Chief Election Commissioner Gyanesh Kumar over alleged irregularities in the voter-roll revision exercise.

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Rahul Gandhi leads INDIA bloc march to Supreme Court over voter list row

Rahul Gandhi led the INDIA bloc’s protest march towards the Supreme Court in New Delhi as opposition parties intensified their campaign over the voter list revision process and alleged electoral irregularities.

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Congress leader Rahul Gandhi led an INDIA bloc protest march towards the Supreme Court in New Delhi on Monday, October 12, as opposition parties stepped up their campaign over alleged irregularities in the revision of electoral rolls.

The demonstration was part of a wider opposition mobilisation demanding accountability from Chief Election Commissioner Gyanesh Kumar over the Special Intensive Revision (SIR) of voter lists. Opposition leaders have alleged irregularities in the revision of electoral rolls and have called for action against Chief Election Commissioner Gyanesh Kumar 

The opposition has accused the Election Commission of electoral irregularities in connection with the Special Intensive Revision (SIR) of electoral rolls. Rahul Gandhi has called for Chief Election Commissioner Gyanesh Kumar to resign 

INDIA bloc intensifies protest over voter lists

The march brought opposition parties together around their objections to the SIR process and their demand for Kumar’s resignation. Rahul Gandhi had called on political parties, students and civil society groups to participate in the demonstration.

The INDIA bloc has also raised broader concerns about electoral integrity and the treatment of voters whose names were removed from electoral rolls. The INDIA bloc has challenged alleged electoral irregularities in the SIR process and demanded accountability from Chief Election Commissioner Gyanesh Kumar. 

According to the report, the opposition’s legal team filed a petition against the poll panel chief over alleged ‘vote chori’ (vote theft). 

Chief Justice declines meeting request

Ahead of the march, Chief Justice of India Surya Kant declined a request to meet opposition leaders, according to reports citing sources familiar with the response.

The response did not prevent the opposition from proceeding with its planned march. The Supreme Court can consider legal challenges through its judicial process, rather than through an administrative meeting with a political delegation.

Security measures and metro restrictions in Delhi

Authorities tightened security in parts of central Delhi ahead of the demonstration. The Delhi Metro Rail Corporation announced that entry and exit at six stations would remain closed until 4 pm on October 12 for security reasons.

The affected stations were Patel Chowk, Janpath, Rajiv Chowk, Mandi House, Central Secretariat and Barakhamba Road. Interchange facilities remained available at the affected stations under the announced arrangement.

The restrictions came amid a series of protests in the capital over demands for Kumar’s resignation and allegations concerning the electoral roll revision process.

Dispute over the SIR process continues

The Special Intensive Revision has become a point of contention between opposition parties and the Election Commission, with opposition leaders alleging electoral irregularities in the revision of voter lists. 

The INDIA bloc’s campaign has focused on electoral irregularities and demands for accountability from the Election Commission’s leadership 

The dispute is now unfolding through both street protests and legal proceedings. The outcome will depend on the relevant judicial processes and any further decisions by the authorities concerned.

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