Jalan panel for review of economic capital framework in every 5 years

RBI's central board approved the transfer of record Rs 1.76 lakh cr dividend and surplus reserves to the govt.

Congress slams RBI Governor Shaktikanta Das, terms him as pliant

He said the decision of RBI was ‘a confirmation of what the party had been forewarning about the state of the economy.’

RBI has lowered the repo rate by 1.1 percentage points in 2019, the banks are yet to pass on the entire benefit to borrowers.

A dozen public sector banks, including State Bank of India, have voluntarily linked their interest rates to repo.

IL&FS group's failure has made banks highly risk averse to the NBFC sector, leading to a severe liquidity crunch.

SBI was to first one to link loans and deposits to the repo rate from May and home loans from July, six other banks followed.

If the RBI does cut rates in Oct and early next year it will be the most aggressive amongst major central banks in easing policy.

The RBI itself has reduced its growth estimate down to 6.9 per cent for FY20, from the seven per cent it had projected in its June policy.

The economy needs to be pumped up as every sector from automobiles to agriculture is seeing a slowdown.

On a review, it has been decided to reduce the risk weight for consumer credit, including personal loans, RBI statement said.