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RBI monetary policy resolution 2022: Repo rate remains unchanged, check key points, implications here

A six-member Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das announced the first monetary policy resolution after the announcement of Union Budget 2022.

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Shaktikanta Das

A six-member Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das announced the first monetary policy resolution after the announcement of Union Budget 2022. Borrowers can ease up a little but for the depositors, there is no immediate relaxation. Their wait has got a little longer due to one of the lowest interest rates on fixed deposits. 

Here are the key points from RBI’s policy resolution:

The status quo on the benchmark interest rate or repo rate is maintained at 4 per cent.

The real gross domestic product (GDP) growth for the financial year 2022-23 is projected at 7.8 per cent.

The reverse-repo rate remains unchanged at 3.35 per cent.

The Bank Rate and the Marginal Standing Facility Rate both remain at 4.25 per cent.

For Consumer Price Index (CPI), the inflation projections for FY 2021-22 and FY 2022-23 have been kept at 5.3 per cent and 4.5 per cent, respectively.

Headline inflation is predicted to peak within the specified tolerance band in Q4 2021-22, then decrease in the second half of 2022-23, allowing for more accommodating monetary policy.

Damaged currency note exchange rules

The worse the note is, its value will be lower.

If a person has more than 20 damaged notes and their total is more than Rs 5,000, the transaction fee for the same will be charged.

It is important to see if the note shows security symbols before going for an exchange.

There would be no mutilated currency notes in circulation if the RBI swaps them. The Reserve Bank of India intends to produce new banknotes.

RBI on Cryptocurrencies

Private cryptocurrencies, according to RBI governor Shaktikanta Das, are a danger to macroeconomic and financial stability, and individuals who are investing at their own risk should be aware of the hazards.

A 30% tax on virtual digital assets such as Bitcoin and Ethereum was suggested in the Union Budget.

The buyer is responsible for withholding tax at a rate of 1% on payments made for the purchase of such asset. Gains or losses on the sale of virtual assets will also be ineligible for offset against other gains or losses. i.e. it will be considered as a distinct asset type.

Sitharaman also stated that the RBI will establish its own digital currency or cryptocurrency digital asset.

What will be the implications?

Read Also: RBI Monetary Policy: RBI Governor Shaktikanta Das to announce MPC outcome soon, here’s what to expect

No change in policy rates will be impacted immediately on EMIs of personal loans, home loans and auto loans.

Lenders should preferably follow the interest rate movement and take time to decide any future interest rate changes.

Indicators point to inflation becoming a major worry in the near future.

India News

Congress, BJP attack Bhagwant Mann over remarks on Punjab blasts

Congress and BJP have jointly criticised Punjab CM Bhagwant Mann after he linked recent blasts near defence sites to political motives, triggering a controversy.

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Bhagwant Mann

A political row has erupted in Punjab after Chief Minister Bhagwant Mann linked recent blast incidents to political motives, drawing sharp criticism from both the Congress and the Bharatiya Janata Party (BJP).

The controversy follows two low-intensity explosions reported within a short span of time — one near the Border Security Force (BSF) headquarters in Jalandhar and another close to an army cantonment area in Amritsar. The incidents raised concerns over security, particularly given the sensitive nature of the locations.

In response, Mann suggested that the blasts could be part of a larger political strategy. His remarks triggered a strong backlash, with opposition parties accusing him of politicising a serious security issue.

Leaders from the Congress criticised the Chief Minister’s statement, calling it inappropriate and alleging that such comments undermine the gravity of the situation. They stressed that matters related to national security should be handled with caution and responsibility.

The BJP also joined the criticism, questioning the basis of Mann’s claims and urging the state government to focus on investigation and law enforcement instead of making political allegations.

The developments have led to an unusual moment where both Congress and BJP appear aligned in their criticism of the Aam Aadmi Party-led government in the state.

Meanwhile, the blasts themselves have intensified concerns over safety in border regions, with authorities continuing their investigation into the incidents. No casualties were reported, but the proximity to defence establishments has made the issue particularly sensitive.

The episode has further escalated political tensions in the state, with security and accountability emerging as key points of debate.

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India News

Himanta Biswa Sarma resigns as Assam chief minister, oath ceremony likely after May 11

Himanta Biswa Sarma resigns as Assam Chief Minister after BJP-led NDA’s victory. He will continue as caretaker CM until the new government is sworn in after May 11.

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Himanta sharma

Assam Chief Minister Himanta Biswa Sarma resigned from his post on Wednesday, paving the way for the formation of a new government after the BJP-led NDA secured a decisive victory in the 2026 Assembly elections.

Sarma submitted his resignation to Governor Lakshman Prasad Acharya at Lok Bhawan in Guwahati. The Governor accepted the resignation and asked him to continue as the caretaker Chief Minister until the new government takes charge.

The resignation comes after the NDA’s strong electoral performance, where the alliance won a clear majority in the 126-member Assembly, ensuring its return to power for another term.

Oath ceremony expected after May 11

Speaking to reporters after submitting his resignation, Sarma said the swearing-in ceremony for the new government is likely to be held after May 11.

He indicated that Prime Minister Narendra Modi has been invited to attend the ceremony but is unavailable until May 11, which has influenced the tentative schedule.

Decision on next chief minister soon

Sources suggest that central observers, including senior BJP leaders, are expected to arrive shortly to oversee the selection of the legislature party leader. The newly elected MLAs will then decide on the next Chief Minister.

Despite the formal resignation, party sources indicate that Sarma is likely to continue in the role for another term, given the BJP’s strong mandate in the state.

The move marks the beginning of the government formation process in Assam following the election results declared earlier this week.

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Rahul Gandhi and Vijay alliance took shape through backchannel talks, early signals from Congress leaders

Congress outreach and political calculations led to Rahul Gandhi and Vijay coming together after the Tamil Nadu 2026 election results.

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The coming together of Rahul Gandhi and actor-politician Vijay in Tamil Nadu after the 2026 Assembly elections was not sudden, but the result of behind-the-scenes political manoeuvring and early signals within the Congress.

According to media reports, some leaders in the Tamil Nadu Congress had already sensed the scale of Vijay’s surge during the campaign, anticipating what was later described as a “wave” in favour of his party.

After the results, where Vijay’s Tamilaga Vettri Kazhagam (TVK) emerged as the single largest party but fell short of a majority, communication channels between the Congress leadership and Vijay quickly became active.

A key moment in this evolving political equation was a phone call from Rahul Gandhi to Vijay, congratulating him on the party’s strong performance. The conversation was seen as more than a courtesy, signalling the possibility of cooperation at a time when government formation required additional support.

Reports indicate that discussions within Congress weighed the political benefits of supporting Vijay, especially given the shifting dynamics in the state where traditional dominance by major Dravidian parties has been challenged.

With TVK needing allies to cross the majority mark, Congress emerged as a potential partner, leading to a broader political realignment in the state. This development also triggered tensions within opposition alliances, highlighting the strategic importance of the decision.

The evolving partnership reflects a mix of electoral pragmatism and changing voter sentiment, particularly the growing influence of younger voters, which leaders acknowledged as a key factor in the election outcome.

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