"The world is bracing up for a second wave as it cautiously opens up. We shall remain alert and watchful and collectively do whatever is necessary to revive the economy and preserve financial stability,” said RBI Governor Das.
Introducing mechanism of positive pay for all cheques above Rs 50,000
Scheme of offload retail payments using cards and mobile devices and a system of online dispute resolution mechanism or digital payments will also be introduced
Borrowing costs have dropped to lowest in a decade due to abundant liquidity, Das said during his address
NBFC commercial papers have softened to 3.8% as of July 31.
Rates have fallen to 3.4% for non-NBFC borrowers, as of July 31.
The lower borrowing costs have led to record issuance of corporate bonds worth Rs 2.09 lakh crore in Q1 of FY21. Market financing conditions for NBFCs have also largely stabilised in the wake of RBI policy measures, Das said.
Mutual funds have stabilised since the Franklin Templeton episode and AUM of debt mutual funds have also recovered and improved to Rs 13.89 lakh crore, he said.
The committee expects headline inflation to remain elevated in Q2FY21, said the RBI governor. Headline inflation which was 5.8% in March was placed at 6.1% in the provisional estimates for June 2020, he said, adding that inflationary pressures were evident across all subgroups.
“Headline inflation likely to ease in H2FY21, aided by favourable base effects.”
