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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

Ex-shooter of Mukhtar Ansari gang shot dead in Barabanki, 15 rounds fired

A former shooter linked to Mukhtar Ansari’s gang was killed in Barabanki after attackers fired 15 rounds at his vehicle during a 10-minute assault.

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A former shooter linked to the gang of Mukhtar Ansari was shot dead in Uttar Pradesh’s Barabanki district after unidentified attackers opened fire on his vehicle.

The deceased, Shoaib alias Bobby, had earlier been associated with Ansari’s criminal network. He was also an accused in the 1999 murder case of Lucknow jailer RK Tiwari.

Attack in Asaini area

According to police officials, the incident took place in the Asaini area when Shoaib was travelling from Barabanki towards Lucknow. A total of 15 rounds were fired at his vehicle during the attack.

Authorities said the firing continued for nearly ten minutes. Eyewitnesses reported hearing multiple gunshots as the vehicle came under sustained fire, creating panic in the locality. The scale of the assault and the number of bullets discharged indicate that more than one attacker may have been involved, police added.

Background of the deceased

Shoaib Bobby had been identified in the past as a shooter for the Ansari gang. He was named as an accused in the 1999 killing of jailer RK Tiwari in Lucknow.

About Mukhtar Ansari

Mukhtar Ansari, who was 63 at the time of his death in 2024, had been booked in 65 criminal cases over the years, including charges of murder and extortion. Despite his criminal record, he was elected five times as a Member of the Legislative Assembly from different political parties.

Born in 1963 into an influential family, Ansari entered organised crime during a period when contract mafia activities were prevalent in parts of Uttar Pradesh. From 2005 until his death, he remained lodged in various jails in Uttar Pradesh and Punjab.

Ansari died of cardiac arrest after being hospitalised in 2024. According to a medical bulletin issued in Hindi, he was shifted from jail in Banda to Rani Durgavati Medical College at around 8.25 pm after complaining of vomiting and being found unconscious.

Police are continuing their investigation into the Barabanki shooting.

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Rahul Gandhi faces expulsion demand in Lok Sabha over trade deal remarks

BJP MP Nishikant Dubey has moved a notice seeking Rahul Gandhi’s expulsion from the Lok Sabha. Here is how the disqualification and expulsion process works.

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Rahul Gandhi

Nishikant Dubey, a Member of Parliament from the Bharatiya Janata Party, has sought the expulsion of Congress leader Rahul Gandhi from the Lok Sabha. Dubey has submitted a notice calling for a substantive motion against Gandhi over his remarks concerning the India–US trade deal.

The BJP MP has demanded cancellation of Gandhi’s Lok Sabha membership and has also called for a lifetime ban on him from contesting elections. The development has raised questions about the procedure for removing a sitting Member of Parliament from the House.

How can a Lok Sabha MP be expelled

The process for expelling a Member of Parliament involves several procedural steps within the House:

Submission of complaint
The process begins when a member or political party files a formal complaint against a sitting MP.

Reference to committee
The Lok Sabha Speaker may refer the matter to the Committee of Privileges for examination. The committee is tasked with conducting a detailed inquiry into the allegations.

Investigation and findings
The committee can examine evidence, call witnesses, and allow the concerned MP to present a defence. After completing its review, it submits a report outlining its findings and recommendations.

Consideration by the House
The committee’s report is tabled in the Lok Sabha. If it recommends expulsion, a motion is moved in the House to adopt the recommendation.

Voting on expulsion
For the motion to pass, it must secure a majority of members present and voting. If approved, the MP stands expelled from the House.

Rahul Gandhi’s disqualification in 2023

In 2023, a court in Surat sentenced Rahul Gandhi to two years in prison in a criminal defamation case related to a remark about the “Modi surname”. Under Section 8(3) of the Representation of the People Act, 1951, any MP convicted and sentenced to two years or more faces automatic disqualification from Parliament.

Following the conviction, Gandhi was disqualified as a Member of Parliament. However, he later challenged the verdict in the Supreme Court of India, which stayed his conviction. After the stay order, his Lok Sabha membership was restored and he resumed his role as an MP.

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Amit Shah to visit India-Bangladesh border in Assam on February 21

Amit Shah is scheduled to visit the India-Bangladesh border in Assam’s Cachar district on February 21 and participate in the Vibrant Villages Programme event.

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Amit Shah

Union Home Minister Amit Shah is set to visit the India-Bangladesh international border in Assam’s Cachar district on February 21, in a move that carries political and administrative significance ahead of the upcoming Assembly elections.

According to party sources, Shah will arrive in Assam on February 20 and travel the following morning to Natanpur village in the Katigorah area, located close to the international border. During his visit on February 21, he is scheduled to participate in an event under the Vibrant Villages Programme (VVP).

The visit is notable as action against illegal immigrants from Bangladesh has remained a key electoral issue for the Bharatiya Janata Party (BJP) in the state.

Ahead of the Home Minister’s arrival, State minister Kaushik Rai, Cachar district commissioner Ayush Garg, and senior officials of the Border Security Force (BSF) and police reviewed security arrangements and preparedness in Natanpur village.

Natanpur, situated along the international boundary in Cachar district, has witnessed the apprehension of over 200 illegal migrants in recent years, including individuals from Bangladesh and Myanmar.

The Vibrant Villages Programme, organised by the Home Ministry, focuses on strengthening border areas through livelihood generation, tourism promotion, preservation of cultural heritage, skill development, and support for agriculture and allied sectors.

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