There is constant engagement between the Reserve Bank of India (RBI) and relevant ministries on supply-side measures for inflation management, RBI Governor Shaktikanta Das said on Thursday. “The government has been taking a number of measures. Several ministries are attending to the situation as it is emerging. Surprises are there such as sudden rainfall and floods, and even those are being discussed between the RBI and the government,” he said. RBI Governor on impact of floods on inflation We are monitoring the situation. It (flood) was confined to very few places.one district of Kerala and in certain regions of Himachal. We are monitoring the impact it will have on prices of vegetables and supply disruptions. Some of the impact would be temporary. On recent IT outage There was an unprecedented IT outage globally, which affected businesses in many countries. The outage demonstrated how a minor technical change, if it goes haywire, can wreak havoc on a global scale. It also showed the fast-growing dependence on big-techs and third-party technology solution providers. In this background, it is necessary that banks and financial institutions build appropriate risk management frameworks in their IT, cyber security and third-party outsourcing arrangements to maintain operational resilience. The Reserve Bank has time and again emphasised the importance of robust business continuity plans (BCP) to deal with such incidents. Deputy Governor on exclusion of securities from FAR RBI Deputy Governor Michael Patra said that it has been observed that the major part of the interest of FAR investors is in the 5 to 10 years, which accounts for 90 per cent of the total investment. The interest in the 30 year is just 2 per cent of the total stock of the 30-year that has been issued. It’s like giving time to people to adjust their portfolios because we know that the weight of India in the bond index will slowly rise over a 10 month period. So they have time to adjust their portfolios. Now all the existing securities issued are available for FAR investment so that makes Rs 41 lakh crore of available investment of which investment today is only Rs 2 lakh crore. So there is an ample amount of space to go. Our assessment is that in the categories that are now allowed, there is going to be Rs 4 lakh crore of new issuances which are open to FAR.
