RBI reschedules Monetary Policy Committee meeting to 2-4 December 2020

On Monday, the Reserve Bank of India (RBI) announced that the Monetary Policy Committee meeting is rescheduled. The meeting was initially scheduled for 29, 30 September, and 1 October.

On Monday, the Reserve Bank of India (RBI) announced that the Monetary Policy Committee meeting has been rescheduled. The meeting was initially scheduled for 29, 30 September, and 1 October.

“The dates of the MPC’s meeting will be announced shortly,” the central bank said.

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The Monetary Policy Committee (MPC) led by Shaktikanta Das, RBI Governor was scheduled to meet on 29 September and have continued for three consecutive days. The MPC’s resolution was to be announced on 1 October.

The announcement was made when the Centre informed the Supreme Court that a decision is likely in 2-3 days. The decision will be oriented to “charging of interest by banks on installments,” which were postponed during the COVID-19 lockdown.

The Supreme Court asked the Centre to report the decision via a record and distribute the affirmation to “the parties with pleas challenging interest on deferred installments.”

A bench lead by Justice Ashok Bhushan said, “The court will hear the batch of pleas filed by various industries and trade associations on 5 October.

According to the RBI Act, 1934, the central bank is obliged to arrange at least four gatherings of MPC in one year. The 29 September-1 October MPC could have marked the 25th gathering of “the rate-setting panel.”

The Centre announced that the next meeting is rescheduled to  2- 4 December 2020, with the subsequent scheduled for 3-5 April 2021.

RBI is predicted to keep interest rates constant in the upcoming monetary policy review with regards to the rising retail inflation driven primarily by “supply-side issues,” pundits say.

During the last meeting in August, the policy rates remained constant to control the inflation that has recently risen for the “past 6 per cent mark.” 

“The economy is in an extremely impoverished condition post the pandemic. Policy rates have been cut by 115 basis points since February,” RBI informed.