Reserve Bank of India gave 99,122 crores of rupees to the central government. It is given every year, but this year the amount is huge due to the pandemic. This decision is taken by RBI Board in the annual general meeting where an annual report is also prepared. This report includes the current economic scenario going on in India.
Credit growth is a measurement tool by which we can find out how much is the rise in demand for loans. Last year, the growth rate reduced so much that now in comparison to it we will see better growth now. Although, it is not the best. RBI predicts 10.5% growth because of the base effect. Bank has much liquidity and is in a strong position. The bank also stated that if a loan or credit is needed for the business firms, then banks are fully capable even in stressful scenarios.
The loan growth rate of banks rose to 5.6% on year till March 2021. It will aid further by liquidity support, Low-interest rates, and the government’s growth-enhancing steps. Moreover, the current Repo rate is 4%.
If we see the CPI(consumer price index) inflation, It will be 5% during the year 2021-22. Internationally it is being predicted that there can be an increase in inflation globally. But for India RBI has suggested to state and central governments if inflation is to be controlled, they need to decrease the taxes on fuel. If the taxes aren’t reduced it will affect directly inflation. Consequently, the Repo rate will increase.
The fraud in private sector banks to the total value has increased to 33% in the financial year 2021 from 18.4% a year ago. The share of PSBs in fraud is more than that of the Private sector banks.
For more updates like these, keep watching this space!