RBI Maintains Status Quo On Rate, No Dividend Payout;  Review NBFC Regulatory Framework

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The Reserve Bank of India’s Monetary Policy Committee has once again voted unanimously for status quo.

Also, it has indicated continuance of its accommodative stance as long as necessary (at least in FY20 as well as into FY21) to revive growth and contain inflation in the targeted range (though increased for H2 FY21).

MPC remains committed to ensure ample liquidity and credit flow into the system and support sectors identified as ‘stressed’.

In its regulatory policies, it has made clear its intent to review the regulatory framework for non-banking financial companies taking cognisance of their changing risk profile, increasing size and interconnectedness to the sector.

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ICICI Securities BFSI RBI Policy Action_Dec20.pdf

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