Reserve Bank of India Current Affairs - 2020

RBI cuts Repo Rate

RBI today released its 4th bi – monthly policy review.

  • The Reserve Bank of India cut repo rate by 25 base points to 5.15%. It is the lowest since 2010. This is the fifth consecutive rate cut of the Shaktikanta Das led panel.
  • The RBI also cut GDP growth estimates to 6.1% from earlier 6.9%

All the members of the MPC – Monetary Policy Committee unanimously voted to reduce the repo rate. Last month Government cut the corporate tax rate from 30% to 22% to revive the slow growth rate.

Repo rate

Repo rate is the rate at which the central bank lends money to the commercial banks. With RBI cutting repo rate, inflation would increase in the future. The current inflation of India is 3.21%. This is below the RBI target of 4%.

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RBI expands coverage of Bharat Bill Payment System

In a consumer friendly initiative, Reserve Bank of India (RBI) has expanded the scope and coverage of Bharat Bill Payment System (BBPS) to include all categories of billers who raise recurring bills and payments (except prepaid recharges) as eligible participants, on a voluntary basis.

Key Highlights

With the expansion of the scope of payment facility, RBI now allows other recurring/repetitive bill payments like school fees, insurance premiums, EMIs and municipal taxes, which can also be paid through BBPS.

At present, the facility of payment of recurring bills through BBPS is available only in five segments i.e. direct to home (DTH), electricity, gas, water and telecom.

Expansion of biller categories would increase the user base of Bharat Bill Pay along with providing an efficient, cost-effective alternative to existing systems and enhance consumer confidence and experience.

What is BBPS?

It is an integrated bill payment system that offers interoperable bill payment service to customers online and via a network of agents on ground.

This interoperable platform enables a customer to pay bills like telephone, water, gas, direct-to-home (DTH) and electricity at a single location (electronic or physical).

The system provides multiple payment modes and instant confirmation of payment.

BBPS functions under National Payments Corporation of India (NPCI).

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