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RBI Governor Shaktikanta Das’s big statement on cryptocurrencies – The next financial crisis will be caused by crypto

Shaktikanta Das, governor of the Reserve Bank of India, made a significant announcement about cryptocurrencies on Wednesday. Private cryptocurrencies, according to him, may trigger a financial disaster. He has also described cryptocurrency as a form of gambling.

Cryptocurrencies extremely dangerous for financial stability

The RBI Governor warned that cryptocurrencies are very hazardous to financial stability while speaking at the BFSI Summit. According to him, the value of cryptocurrencies is solely based on conjecture and lacks any substance.

According to the governor of the RBI, the macroeconomic and financial stability of the country may be significantly challenged.

It was anticipated that the government will present a bill to Parliament to control cryptocurrencies. However, the administration decided not to introduce this law. Recently, the administration was also questioned in Parliament about this. The administration responded by claiming that cryptocurrencies are a global problem. And limiting regulation to India will not be effective. To control it, the entire globe must act together.

The value of crypto decreased

The governor of the RBI issued a warning that cryptocurrency will trigger the upcoming financial catastrophe. He added that the whole worth of cryptocurrencies has decreased to $140 billion. He added that investors worth $40 billion had lost everything.

RBI Repo Rate Hike: Reserve Bank of India hikes repo rate by 0.50%, EMI will be more expensive

Increasing its repo rate by 50 basis points, the Reserve Bank of India (RBI) attempted to control inflation on Wednesday. The repo rate increased from 4.40 percent to 4.90 percent after this increase. On Wednesday, Shaktikanta Das spoke about the decision taken at the Monetary Policy Committee meeting.

Repo rate hiked for the second time in a month

Earlier, the RBI surprised the market with a 40-point increase in the repo rate on May 4. During the same period, the cash reserve ratio also increased by 0.50 percent to 4.5 percent. This has been the second increase in the past month. The country’s inflation rate has consistently been above 6 percent. This step was taken by the RBI to provide relief to the general public.

What will be the effect?

RBI’s increase in the repo rate on behalf of banks will affect crores of customers. As a result of an increase in the repo rate, the loans given by banks to their customers will be more expensive. Increases in interest rates will have an effect on EMIs. As compared to earlier, the EMI of the customers will increase.

What is the Repo Rate?

In the repo market, banks borrow money from the Reserve Bank of India at a rate called the repo rate. The increase in repo rates means that banks will get loans from the RBI at higher rates. There will be an increase in the interest rate on Home Loan, Car Loan Personal Loan, etc., which will directly impact your monthly EMI.

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RBI Monetary Policy: Reserve Bank did not change the repo rate for the 11th time

Reserve Bank of India‘s economic policy was announced on Friday. For the 11th time in a row, the Federal Reserve has not changed its key interest rates. At 4%, the Repo rate remains unchanged. Likewise, the MSF rate and the Bank rate remain at 4.25%. Reverse repo rates remain at 3.5%.

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However, the governor of the RBI expressed concern about inflation. According to Das, the repo rate remains at 4 percent for the time being. Increasing the flow of credit will alleviate the pressure on the economy caused by the pandemic.

According to the RBI Governor, the Indian economy is slowly recovering from the pandemic-induced slowdown. Crude oil prices remain elevated globally. Economic conditions are satisfactory due to large foreign exchange reserves; The Reserve Bank is fully prepared to ‘rescue’ the economy. India’s RBI governor said that the country is walking on a different path than other countries in the world.

Among major economies, India will grow at the fastest rate according to the IMF. A massive vaccination program and continued financial and monetary support will lead to this recovery.

What is Repo Rate

This is how you can understand the repo rate. We take out loans from banks, and we must pay interest. The Reserve Bank of India (RBI) provides banks with loans to run their daily operations, which are similar to the banking industry. Whenever the Reserve Bank loans money to the banks, it charges interest at a rate called the Repo Rate.

The impact of repo rates on the common man

By borrowing at low-interest rates, banks are able to offer cheap loans to their customers, since their repo rate will be low. A higher repo rate would make it more difficult for banks to offer loans, which would increase the cost of loans for customers.