oppn parties MPC: Status Quo On Rates And Accommodative Stance Maintained

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  • Allahabad HC said that the UP Police is acting as law unto themselves as they detained a person unlawfully even before his arrest
  • Kolkata witnesses traffic snarls on the first day of the Durga Puja festival as revellers start pnadal-hopping
  • Neha Bora was subsequently released and Dipke is to appear before a magistrate today at noon
  • Delhi Police detained Cockroach Janta Party founder Abhijeet Dipke, Neha Bora of AISA, student leaders and supporters ahead of a rally in Connaught Place demanding Chief Election Commissioner Gyanesh Kumar's resignation. The protest followed the detention and jailing of two CJP leaders earlier in the week over demonstrations at Jantar Mantar
  • The Reserve Bank of India is considering further monetary tightening to counter capital outflows and increase the cost of betting against the rupee, according to bankers and analysts cited by Reuters. The measures follow recent rate increases and steps to drain liquidity as pressure on the currency and inflation concerns persist
  • India directed oil marketing companies to stop diverting sugar-based feedstocks for ethanol production in the 2026–27 supply year, according to a new tender issued on Friday. The companies have invited bids for 11 billion litres of ethanol made from alternatives including corn and broken rice, amid concerns about domestic sugar supplies and prices
  • Finance Minister Nirmala Sitharaman said India's trade imbalance with China was growing sharply and attributed the problem partly to restrictions on Indian goods and services entering the Chinese market. China subsequently said it was ready to work with India to address mutual economic and trade concerns; India's trade deficit with China reached $69 billion in the first half of FY2026–27, up 27% year-on-year
  • Indian equity benchmarks extended their recovery on Friday, with the Sensex rising 413.66 points to close at 74,729.27 and the Nifty 50 gaining 148.80 points to settle at 23,146.15. Information technology shares, including Tech Mahindra, Infosys and TCS, helped lift the indices
  • India defeated Zimbabwe by four wickets in the opening women's T20 International in Raipur, taking a 1–0 lead in the three-match series. Deepti Sharma and Niki Prasad combined in an 82-run stand after India's top order collapsed, helping the hosts chase down Zimbabwe's total of 114 for five
  • Indian wrestler Komal won bronze in the women's 59 kg category at the Under-23 World Wrestling Championships in Las Vegas, defeating Kazakhstan's Viktoriia Khusainova 7–2. Fellow Indian Amruta Pujari advanced to the women's 72 kg final after recording two pinfall victories
  • Indian shuttler Jagsher Singh Khangurra secured a bronze medal at the BWF World Junior Badminton Championships in Cairo
  • The Supreme Court of India upheld the Bombay High Court's decision quashing the 2020 write-off of ₹8,415 crore in additional tier-1 bonds issued by Yes Bank (Yes Bank). The court ruled that the bank's administrator lacked the authority to extinguish the bonds under the final reconstruction scheme, strengthening bondholders' claims
  • The Supreme Court issued notices to the Election Commission of India, Delhi Police and opposition leaders, including Rahul Gandhi and Akhilesh Yadav, in separate petitions concerning electoral-roll revision and protests held in Delhi on October 10–12. The court also directed the preservation of CCTV footage linked to allegations of police excesses
  • The Supreme Court ruled that a person converting from Hinduism to Islam cannot automatically claim backward-class reservation benefits in the new religious community solely on the basis of their previous caste status. The judgment upheld the Madras High Court's decision striking down a 2024 Tamil Nadu government order that permitted such certification for specified communities
  • The Election Commission of India ordered a Special Summary Revision of electoral rolls in 14 states and three Union Territories, using January 1, 2027, as the qualifying date for voter eligibility. The draft rolls are scheduled for publication on November 12, claims and objections will be accepted until December 11, and the final rolls are due on January 4, 2027
Delhi HC refuses to ban CJP's Tiranga rally at Central Park in Connaught Place today /////// Police says will control and regulate it /////// NDMC closes the park for the public on Friday and Saturday
oppn parties
MPC: Status Quo On Rates And Accommodative Stance Maintained

By A Special Correspondent
First publised on 2021-10-09 06:56:07

The Monetary Policy Committee (MPC) of the RBI has maintained status quo on interest rates and will continue with its accommodative stance. The repo rate at 4 percent and the reverse repo rate at 3.35 percent were left untouched as the MPC felt that with the economy showing signs of returning to normal after the disruption caused by the pandemic, it needed continued support in the form of money for investment at reasonable rates. However, the RBI was of the view that with the liquidity overhang of nearly Rs 13 lakh crore in the system, it was now times to mop up the excess liquidity, but in a gradual and calibrated manner. Hence, it has decided to stop G-SAP for now but has said that it was ready to start it again if needed. The other measures announced were increasing the limit of IMPS transaction from Rs 2 lakh to Rs 5 lakh to facilitate easy e-payments and geo tagging for payment system touch points.

The apex bank said that the liquidity in the system was at an average of Rs 7 lakh per day from June to August this year. But in September, it rose to Rs 9 lakh crore per day and has further risen to Rs 9.5 lakh crore per day in October, leading to a liquidity overhang of nearly Rs 13 lakh crore. Since it could lead to inflationary pressures, the bank has decided to mop up the excess liquidity through liquidity adjustment facility. The immediate effect of these announcements was a stiffening of bond yields which rose by 5 basis points. The apex bank also said that the rise in fuel prices needs to be checked by lowering taxes and not through monetary policy.

The accommodative stance - which means that the apex bank is willing to continue with the same rates or even lower them if need be - is the best way to support the economy now. So is the decision to mop up a part of the excess liquidity and the willingness to resume G-SAP if needed. The need now is to reorient the lending policy of PSU banks so that it is not ultraconservative and businesses get funds to start new projects or expand existing ones. 

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