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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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Amit Shah says Centre will amend NDPS Act to tighten crackdown on drug syndicates

Amit Shah said the Centre is relooking the NDPS Act to plug loopholes exploited by narco syndicates and strengthen anti-drug enforcement across India.

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Union Home Minister Amit Shah on Friday said the Centre is preparing amendments to the Narcotic Drugs and Psychotropic Substances (NDPS) Act to close loopholes allegedly exploited by drug trafficking networks and strengthen India’s anti-narcotics framework.

Addressing the 10th apex-level meeting of the Narco-Coordination Centre (NCORD) in New Delhi, Shah said the government is re-examining the existing law and invited states to submit suggestions for the proposed changes. The amendments are being worked on by the Ministry of Finance to make the legislation more effective in tackling organised drug syndicates.

Centre seeks stronger legal framework against narcotics

Shah stressed the need for a tougher approach towards drug traffickers and peddlers, while advocating a compassionate stance towards victims of addiction. He outlined a three-pronged strategy against drug trafficking — “detect, disrupt and destroy” — and urged all stakeholders to intensify efforts against the narcotics menace.

The Home Minister also asked state governments to share suggestions on strengthening the NDPS Act. Directors General of Police have been asked to forward recommendations to the Ministry of Home Affairs, while Chief Secretaries can submit their inputs to the Department of Revenue under the Ministry of Finance.

Seizures of synthetic drugs rise over past decade

Highlighting the government’s anti-drug campaign, Shah said that between 2004 and 2014, around 26 lakh kilograms of synthetic drugs were seized across the country. In comparison, agencies confiscated approximately 1.18 crore kilograms of synthetic drugs between 2014 and 2026.

He further said the estimated value of drugs seized during 2014-2026 stood at around Rs 1.84 lakh crore, significantly higher than the nearly Rs 40,000 crore worth of narcotics seized during the previous decade. According to Shah, these figures reflect the expanded scale and effectiveness of anti-drug enforcement efforts.

The minister also called for real-time information sharing among states through digital platforms developed by the Narcotics Control Bureau and urged authorities to ensure NCORD meetings deliver measurable outcomes. He unveiled the “Vision Document on Drug Control (2026-2029)”, which aims to provide a roadmap for reducing drug demand, curbing supply and minimising harm caused by substance abuse.

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If passport does not establish citizenship, then what does: Shashi Tharoor asks amid row

Shashi Tharoor has questioned the Centre’s stance that passports are not proof of citizenship and urged legislative changes to recognise passports and Aadhaar as conclusive citizenship documents.

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Congress MP Shashi Tharoor on Friday questioned the existing legal framework governing proof of Indian citizenship, asking what document citizens should rely on if a passport itself is not considered conclusive evidence of citizenship.

The remarks came a day after the Centre clarified that an Indian passport is primarily a travel document and has never been treated as definitive proof of citizenship under existing laws. The government maintained that this position is not new and has remained unchanged for years.

Reacting to the clarification, Tharoor described the situation as an “absurd legal paradox” and argued that ordinary citizens have long regarded passports as the highest form of official identity because they are issued only after extensive verification procedures. He said it is difficult for people to understand how a document obtained after rigorous scrutiny does not conclusively establish citizenship.

In a detailed statement, the Thiruvananthapuram MP urged the government to undertake what he termed a “common-sense legislative overhaul” to end the controversy. He proposed amending the legal framework so that both passports and Aadhaar cards are recognised as valid and conclusive proof of Indian citizenship unless specifically cancelled or withdrawn by the government.

Tharoor, however, acknowledged a key challenge with Aadhaar. Since Aadhaar is currently issued on the basis of residence and is available to both citizens and certain non-citizen residents, he suggested that the Unique Identification Authority of India issue a visually distinct Aadhaar card for non-citizens. According to him, such a distinction would allow the government to designate standard Aadhaar cards and valid Indian passports as sufficient proof of citizenship.

The debate intensified after the Ministry of External Affairs stated during a recent briefing that an Indian passport should not be treated as conclusive proof of citizenship. The Centre subsequently reiterated that the Passports Act, 1967 permits passports to be issued to non-citizens in certain circumstances in the public interest, and therefore possession of a passport alone cannot legally establish citizenship.

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Ayodhya Ram Mandir donation row: 8 arrested, Champat Rai resigns as Yogi Adityanath vows strict action

The Ayodhya Ram Mandir donation controversy intensified after all eight accused were arrested and trust official Champat Rai resigned on moral grounds.

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Ram Mandir

The alleged embezzlement of donations received at the Ram Mandir in Ayodhya has triggered major developments, with all eight accused named in the FIR now under arrest and senior temple trust officials resigning from their positions. Authorities have said the investigation will continue and anyone found guilty will face strict action.

The First Information Report was registered following recommendations made by a Special Investigation Team (SIT) constituted by the Uttar Pradesh government to probe allegations of irregularities in the handling of donations received at the temple. The complaint was lodged by a member of the Shri Ram Janmabhoomi Teerth Kshetra Trust.

According to officials, the eight accused were associated with the process of counting cash and valuables offered by devotees at the temple. Senior officials confirmed that all those named in the FIR have been arrested and are currently being questioned as part of the ongoing investigation.

Champat Rai and Anil Mishra step down

Amid the growing controversy, Shri Ram Janmabhoomi Teerth Kshetra Trust General Secretary Champat Rai resigned from his post on moral grounds. Trust member Anil Mishra also submitted his resignation, officials confirmed. Their resignations come as scrutiny over the alleged misappropriation of temple donations intensifies.

Yogi Adityanath says guilty will not be spared

Addressing a public meeting in Deoria, Uttar Pradesh Chief Minister Yogi Adityanath said action began immediately after the SIT submitted its report. He asserted that no individual involved in wrongdoing would be exempted from legal action.

The chief minister described Ayodhya as a symbol of faith and said that public sentiments attached to Lord Ram and Sanatan Dharma cannot be compromised. He assured that the government would ensure a fair probe and separate truth from falsehood.

The issue has also sparked political reactions, with opposition leaders questioning the investigation and demanding accountability, while BJP leaders have maintained that strict action will be taken against all those responsible.

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