MUMBAI, Feb. 14 -- The Reserve Bank of India (RBI) stepped in to do the heavy lifting to revive the economy, after the Union budget appeared to have few measures to spur credit growth and boost demand.
On 6 February, the central bank introduced a direct incentive framework to boost credit growth, even as the six-member monetary policy committee (MPC) kept benchmark rates unchanged because of uncertainty in the inflation outlook.
"While this (MPC) decision may be on expected lines and widely discounted, it is important not to discount the Reserve Bank of India," governor Shaktikanta Das said. "It has to be kept in mind that the central bank has several instruments at its command that it can deploy to address the challenges the Indian econ...