The Reserve Bank of India (RBI) in a report claimed that Rs 18.5 lakh crore currency has reached the public. The money regulatory board said that the currency is at a record high level that is almost double to Rs 7.8 lakh crore it had post-demonetisation in 2016. The report added that total currency of Rs 19.3 lakh crore is in circulation by the RBI that is double to post demonetisation’s record Rs 8.9 crore. The RBI said that the report of money in circulation is recorded after deducting the cash with banks.
A few days ago, the Reserve Bank of India (RBI) had hiked the repo rate by 25 basis points to 6.25%. A 6-member monetary policy committee had taken the decision which was headed by RBI governor Urjit Patel. The money regulatory board has projected inflation rate 4.8 to 4.9% for the 1st half of 2018-2019. While RBI announced 4.7% for the second half respectively.
GDP 7.5 to 7.6 is projected for the first half of and 7.3-7.4 for the second half of 2018-2019. It was the 1st time when repo rates were being changed by RBI in past four and half years since the Narendra Modi government has come to power.
The monetary policy made no changes in cash reserve ratio (CRR) and statutory liquidity ratio (SLR). The current CRR is 4% and SLR as 19.5% respectively.
The RBI governor Urjit Patel reportedly said that domestic economic activities have exhibited sustained revival in recent quarters and the output gap has almost closed.
Investment activity, in particular, is recovering well and could receive a further boost from the swift resolution of distressed sectors of the economy under the Insolvency and Bankruptcy Code.