RBI Won’t Do Anything That Goes Against Russia’s Economic Sanctions, Says Shaktikanta Das: 10 Points

RBI Governor Shaktikanta Das touched upon a host of issues in a press conference
Reserve Bank of India Governor Shaktikanta Das addressed a host of issues while interacting with the media in the customary post-monetary policy review press conference, which was being after two years. Right from hinting at changing the accomodative policy stance, to pondering over how the impact of the Russia-Ukraine war influenced the central to alter its stand on inflation and growth, Mr Das touched upon some key aspects. Let us read about 10 important points which the RBI Governor referred to in the press conference.Responding to questions on government procuring oil from Russia and the rupee-rouble trade despite sanctions imposed on that country, Mr Das said government is ceased on those matters, but as far as RBI is concerned, it will not do anything that goes against economic sanctions on Russia.The RBI Governor also hinted at ending the accommodative policy stance, saying that “in the sequence of priority, we have put inflation before growth, as for the last three years growth was prioritised ahead of inflation”.Commenting on the geo political situation, the central bank chief said it is dynamic and fast changing and all actions will be tailored accordingly.”Between February and now, tectonic shifts have happened globally,” Mr Das said while referring to the Russia-Ukraine war which began on February 24, 2022, just days after the previous meeting of the RBI’s Monetary Policy Committee.He said that inflation projections especially have been revised upwards mainly due to crude oil rising above $100 per barrel mark.Mr Das added that edible oil prices have also risen due to Russia-Ukraine war related factors.Referring to food prices, especially those of wheat, the RBI Governor said that these too have gone up due to the war situation.Refusing to comment specifically on HDFC-HDFC Bank merger, he said that RBI has received the proposal and it is under examination. “As per our regulatory guidelines, we will examine it and take a decision. Beyond that it won’t be proper to comment it,” Mr Das said.Referring to cardless withdrawals, the RBI Governor said it has been introduced to cut down on skimming. Credit and debit cards’ issuance will continue as they many uses apart from withdrawal of money from ATMs.”It is now proposed to make card-less cash withdrawal facility available across all banks and ATM networks using the UPI. In addition to enhancing ease of transactions, the absence of the need for physical card for such transactions would help prevent frauds,” Mr Das had said in his statement.



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