The Reserve Bank of India (RBI) has imposed a fine of Rs 36 lakh on state-owned Central Bank of India for violating norms related to protection of the interests of customers. According to RBI, this action on the bank has been taken on the basis of lack of regulatory compliance. RBI said that this decision has been taken after the investigation and the reply to the show cause notice issued by the bank. The central bank is not satisfied with the reply.
Details of the discussions of the MPC released: Meanwhile, the RBI released the details of the discussions held in the six-member meeting of the MPC held from April 6-8 on Friday. The MPC had decided in this meeting that the repo rate would be retained at the old level. This was the 11th consecutive time that the MPC did not change the repo rate linked to the cost of borrowing. This step was taken to accelerate economic growth despite rising inflation.
According to the minutes of the meeting, the RBI governor had said, "The situation is dynamic and changing rapidly. We should constantly re-evaluate the situation and be prepared to take our actions accordingly."
In this meeting, the RBI raised the inflation forecast for the current fiscal to 5.7 per cent, as against 4.5 per cent forecast in February. Along with this, the RBI also reduced the growth rate forecast for the current financial year from 7.8 per cent to 7.2 per cent.
