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RBI to release Digital Payment Index by July 2020
The Reserve Bank of India announced that it will create a Digital Payment Index by July 2020. The main aim of the index creation is to capture the extent of digitization of monetary payments in the country.
With the launch of Digital India and the Gol's push towards Digital economy, the Digital Payments in the country has been growing fast. In order to monitor the digital payments, the Central Bank is to release Digital Payments Index. The index will reflect the penetration of Digital Payments in the country.
RBI has planned to introduce classification in the Index. The classification will include rural, urban and semi-urban geographies.
The index will help to study the impact of policy interventions that are been taken by the goal.
Factors influencing Digital growth in India
The five factors that are influencing digital growth in india includes low data tariffs, rise in videos, whispered use of OTT (over -the-top) platforms. Today India ranks the highest in video making platform.
On February 6, 2020, the RBI released its bimonthly monetary policy. The apex bank has kept the policy reporate unchanged. It remains at 5.19%.
Observation of the committee
The monetary policy committee that meets once in two monts under the chairmanship of its Governor has made the following observations
- The inflation has increased and the unusual price hike in onion has been the main reason behind price rise. The retail inflation has increased from 4.6% in October to 5.5% in November. It increased further to 7.4% in December 2019. It is the highest since July 2014.
- The committee estimates CPI for Q4 of the financial year 2020 at 6.5% for Q3. It was at 3.2%.
- The reverse repo rate under the liquidity adjustment facility remain unchanged at 4.9%.
- The bank rate and the marginal standings facility rate stood at 5.4%.
According to RBI, the economic slow down is mainly due to muted corporate investments, weak household spending and slowdown in construction and manufacturing activity.
SBI announces rate cut in FD's
SBI has announced a cut in retail fixed deposits rates.The rate cut will be effective from 10 February. The move by SBI is due to surplus liquidity in the system.
SBI realigned in interest rates on retail term deposits which is less than Rs 2 crores and bulk team deposits of Rs 2 crores and above.
SBI reduced the term deposit rates by 10-50 basis points in the retail segment and 25-50 bps in the bank segmen.
It reduced the FD rates across all tenors except for those with a maturity period of 7 days to 45 days.
It also offered senior citizens and addition 50bps intrest rates across all tenures.