RBI Governor Current Affairs - 2020

President’s New Secretary: Former retd IAS officer Kapil Dev Tripathi

On April 20, 2020, the Former IAS officer Kapil Dev Tripathi was appointed as the new secretary to the President of India Shri Ram Nath Kovind. The Appointments Committee of the Cabinet approved his appointment for a term co-terminus with the tenure of the President.

Appointment Committee of the Cabinet

The Appointment Committee of the Cabinet appoints the top posts of Government of India. It is composed of Prime Minister of India (chairman), Home Minister. The committee makes appointments according to the Transactions of Business rules, 1961.

The committee makes the appointments of Director General of Military Operations, Chiefs of three services, Chiefs of Air and army commands, scientific advisor of the defence minister, director general of defence estates, director general of armed forces, governor of reserve bank of India, Chief Vigilance Officers, Chairman and Members of railway board.

Kapil Dev Tripathi

He is a 1980 batch IAS officer. He is to replace Sanjay Kotahri. MR Sanjay Kothari has been appointed as the Chief Vigilance Commissioner in February. Mr Tripathi retired as Secretary in Ministry of Petroleum and Natural Gas.

RBI: Cuts repo rate to 4.4%; CRR to 3%; 3-month moratorium allowed on all loans

On March 27, 2020, the Reserve Bank of India announced series of measures to counter economic slowdown caused due to COVID-19. The Central bank advanced its Monetary Policy Committee meet due to COVID-19 pandemic. This was the 7th Bi-Monthly Monetary Policy Statement of the RBI for the financial year 2019-20.

The RBI measures introduced is to inject Rs 3.74 lakh core into the Indian Economy according to the RBI Governor.

Highlights

While India has locked down its economic activity, the main objective of RBI is to keep finance flowing.

The repo rate was cut by 75 basis points (bps) to 4.4%, reverse repo rate was cut by 90 bps to 4%. RBI rules banks and other institutions to provide a three-month moratorium on all loans.

Other Key Decisions

The Cash Reserve Ratio was cut by 100 bps to 3% of NTDL (Net Time and Demand Liabilities). The Cash Reserve Ratio is the minimum fraction of the customer deposit that a bank can hold.

The investments are to be classified as Held To Maturity. RBI is to introduce Net Stable Funding Ratio between April and October, 2020. It is the ratio between amount of  stable funding available to the amount of stable funding required.