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RBI keeps repo rate, stance unchanged citing risks to inflation (Second Lead)

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Mumbai, Dec 5 (IANS) Upside risks to inflation led the Reserve Bank of India (RBI) on Wednesday to keep its key lending rate for commercial banks unchanged at 6.5 per cent for the second time in succession.

Consequently, the central bank’s reverse repo rate has been maintained at 6.25 per cent, and the marginal standing facility (MSF) rate and the bank rate at 6.75 per cent.

The RBI’s monetary policy committee (MPC) also made no changes to its stance of “calibrated tightening” in its penultimate monetary policy review of the current fiscal. The stance was adopted in the last policy review conducted in October.

The decision on keeping the policy rate unchanged was taken unanimously by the six-member MPC headed by RBI Governor Urjit Patel. However, government nominee in the MPC, Ravindra Dholakia, voted to change the stance back to neutral.

According to the RBI, even as inflation projections have been revised downwards significantly and some of the risks pointed out in the last resolution have been mitigated, especially of crude oil prices, several uncertainties still cloud the inflation outlook.

“The MPC noted that the benign outlook for headline inflation is driven mainly by the
unexpected softening of food inflation and collapse in oil prices in a relatively short period of time,” Patel said at the post-meeting press conference.

“Excluding food items, inflation has remained sticky and elevated, and the output gap
remains virtually closed.”

Although the central bank has lowered its CPI (consumer price index), or retail inflation, projection, it did not change the policy stance.

Accordingly, the central bank believes that there are challenges like a sudden spike in prices of perishable food items, risks from revision in minimum support prices (MSPs) and rise in crude oil price to inflation and inflationary outlook.

However, the review statement indicated a scope for a change in policy stance, if the upside risks to inflation do not materialise.

“RBI looks at the medium term target. Our projection for the inflation for the second quarter 2019-20 is 4.2 per cent, that is, over a one-year time frame which is higher than the medium-term target,” RBI Deputy Governor Viral Acharya said in response to a question on inflation targeting and not changing the stance.

The RBI’s MPC is mandated to achieve the medium-term target for CPI inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.

The RBI also maintained its GDP growth projection for the current fiscal at 7.4 per cent as in the October policy, and at 7.5 per cent for the first half of 2019-20, “with risks somewhat to the downside”.

“The MPC also noted that even as escalating trade tensions, tightening of global financial conditions and slowing down of global demand pose some downside risks to the domestic economy, the decline in oil prices in recent weeks, if sustained, will provide tailwinds,” Patel said.

On the steps to increase liquidity, RBI announced a reduction of SLR (Statutory Liquidity Ratio) from the current 19.5 per cent of net demand and time liabilities (NDTL) to 18 per cent over a period of six quarters starting from the January-March 2019 quarter.

–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma

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World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.

Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.

During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.

On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”

Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.

It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.

Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.

Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”

On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”

The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.

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