RBI Monetary Policy: For the fifth time in a row, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) decided on Friday to maintain the repo rate at 6.50 percent. Governor Shaktikanta Das also declared that the growth estimate for the current fiscal year has increased from the previous 6.5% to 7%. Here are the things that RBI governor announced in today’s MPC meet:
Key rates to remain unchanged: The Governor announced that the central bank’s MPC (MPC) has decided to keep key rates unchanged. The repo rate has remained unchanged at 6.50 per cent. The pause continued for the fifth time in row.
Withdrawal of accommodation: Five of the six members of the Monetary Policy Committee (MPC) voted to keep the focus on the withdrawal of accommodations, according to RBI governor Shaktikanta Das.
Real GDP Projection: The real GDP is expected to grow at 7% in FY24. Earlier it was projected at 6.5%.
Inflation forecast: The inflation forecast for FY24 has remained unchanged. RBI Governor said that the food inflation needs to be monitored and need to keep an eye on the higher prices of key vegetables. He talked about rising sugar prices globally.
Reversal of liquidity facilities: Due to the high rate of bank use of the standing deposit facility (SDF) and marginal standing facility (MSF), the central bank has proposed that, starting on December 30, 2023, liquidity facilities in both SDF and MSF may be reversed, even on weekends and holidays.
UPI transaction limit: Governor of the central bank Shaktikanta Das announced that the RBI has decided to raise the UPI transaction limit for payments related to hospitals and education from Rs 1 lakh per transaction to Rs 5 lakh per transaction.
Framework for loan aggregators: The RBI has chosen to establish a fintech depository and establish a regulatory framework for online loan product aggregation, according to Governor Shaktikanta Das. More transparency in digital lending will result from this. decided to provide all regulated entities with a single regulatory framework for connected lending. This will improve the credit pricing for all REs, he stated.
Cloud facility for the financial sector: To improve data security and privacy, RBI is building a cloud service for the Indian financial industry. According to Das, the facility will be implemented gradually over the course of the medium term.
