RBI credit policy: Key highlights

The Reserve Bank of India (RBI) on Tuesday increased the policy rates to rein in increasing inflation. The repo rate, at which the RBI provides credit to banks, has been hiked by 0.50 percentage points (50 basis points or bps) to 7.25 per cent. The reverse repo rate, which from now onwards will be 100 basis points below the repo rate as a rule, has also gone up by 0.50 percentage points to 6.25 per cent.

The following are the highlights of the Monetary Policy Statement for 2011-12 by RBI governor D Subbarao:

• Short term lending rate (repo) hiked by 50 percentage point to 7.25 per cent.

• Repo rate to be only effective policy rate to better signal monetary policy stance from now on.

• Reverse repo to be fixed 100 percentage point lower than the repo rate.

• Short-term borrowing rate (reverse repo) up by 50 percentage point to 6.25 per cent.

• Cash reserve ratio (CRR) and bank rate left unchanged at 6 per cent each.

• Interest rates on savings bank deposits hiked to 4 per cent from 3.5 per cent.

• Economic growth projected lower at 8 per cent for FY12.

• WPI inflation projection lowered to 6 per cent.

• Objective is to contain inflation by curbing demand-side pressures.

• Favours aligning of fuel prices with international crude prices to avert widening of fiscal deficit.

• Banks to get a new overnight borrowing window under Marginal Standing Facility at 8.25 per cent.

• Likelihood of oil prices moderating significantly is low.

• Malegam Committee recommendations on MFI sector broadly accepted.

• Bank loan to MFIs on or after April 1, 2011, will be treated as priority sector loans.

Sourav Ganguly to play in IPL 4 for Pune Warriors

 Former skipper of Kolkata Knight Riders Sourav Ganguly, who went unsold in the Indian Premier League auction early this year, will now play for Pune Warriors for the remainder of the fourth season and the team management says that "he is not playing for money, just to prove a point".
Ganguly, a former India captain who had a base price of $400,000 in the January auction, will replace injured fast bowler Ashish Nehra. Pune Warriors director Abhijit Sarkar told IANS that Ganguly will be joining the team Tuesday.
"We came to know about Ashish Nehra's injury and fitness report yesterday (Monday). The team has been battling a string of injuries to key players like Tim Paine, Angelo Mathews and now Nehra. So we went with the best option available after discussing with our coach and team management," Sarkar told IANS.
"We hope his experience will help the team. He told us that he is not playing for money but to prove a point."
Ganguly will be playing under Yuvraj Singh and Sarkar said the team has no problem with his inclusion in the side.
"Yuvraj has already spoken to Sourav. They are all professional cricketers and understand the need to adjust as per the requirements of the team," he said.
Ganguly, however, is unlikely to play in the coming Pune Warriors match against Mumbai Indians Wednesday.
"He, however, will join the team for practice and training," Sarkar said.

Dorjee Khandu Arunachal identifies CM copter crash site - The Times of India

Arunachal identifies CM copter crash site - The Times of India