The RBI monetary policy committee unanimously decided to keep the policy repo rate unchanged at 6.50%. The RBI MPC with 5:1 has maintained 'withdrawal of accommodation' policy stance, to ensure that inflation progressively aligns with the target, announced RBI Governor Shaktikanta Das
The Standing deposit facility will remain unchanged at 6.25%, and the marginal Standing Facility is also kept unchanged at 6.75%, said RBI Governor Shaktikanta Das
RBI Governor Shaktikanta Das said that the Indian economy and financial sector are strong and resilient amid global uncertainties, and that domestic macroeconomic fundamentals are strengthening, "We can derive satisfaction from the fact that the Indian economy stands out as strong and resilient. We are acutely aware that global policy normalisation is not over," he said
The RBI put a pause on its rate hike cycle in the last MPC meeting in April. The central bank has stayed with the 6.5% repo rate. Before this, the central bank hiked repo rate by 250 bps since May 2022 to stem inflation
April 6, 2023: Repo rate kept unchanged
February 8, 2023: Repo rate increased by 25 bps to 6.50%
December 7, 2022: Repo rate increased by 35 bps to 6.25%
September 30, 2022: Repo rate increased by 50 bps to 5.90%
August 5, 2022: Repo rate increased by 50 bps to 5.40%
June 8, 2022: Repo rate increased by 50 bps to 4.90%
May 4, 2022: Repo rate increased by 40 bps to 4.40%
Shaktikanta Das projected GDP growth for 2023-24 at 6.5%, same as the previous MPC statement. However, the RBI Governor announced slight tweaks in the quarterly growths, with Q1 at 8%, Q2 at 6.5%, Q3 at 6% and Q4 at 5.7%
Consumer price inflation (CPI) is expected to remain above 4% throughout FY24, said Shaktikanta Das. Headline inflation is projected to decline in 2023-24 from its level in 2022-23 but would still be above the target, warranting continuous vigil, he said. Inflation declined to an 18-month low of 4.7% in April this year. Shaktikanta Das indicated that the May numbers would be lower compared to that of April
With a view to providing greater flexibility for managing the money market borrowings, RBI MPC has decided that Scheduled Commercial Banks (excluding Small Finance Banks) can set their own limits for borrowing in Call and Notice Money Markets within the prudential limits for inter-bank liabilities prescribed by the Reserve Bank of India. Necessary directions are being issued today
In order to expand payment options for Indians travelling abroad, RBI has decided to allow issuance of RuPay prepaid forex cards by banks in India for use at ATMs, PoS machines and online merchants overseas. Further, RuPay debit, credit, and prepaid cards will be enabled for issuance in foreign jurisdictions, which can be used internationally, including in India
Keeping in view the benefits for users and beneficiaries alike, RBI MPC has proposed to expand the scope and reach of e-RUPI vouchers by permitting non-bank Prepaid Payment Instrument (PPI) issuers to issue e-RUPI vouchers, and enabling issuance of e-RUPI vouchers on behalf of individuals. Other aspects like reloading of vouchers, authentication process, issuance limits, etc., will also be modified to facilitate use of e-RUPI vouchers
Bharat Bill Payment System (BBPS) has onboarded over 20,500 billers and processes over 9.8 crore transactions every month. To enhance the efficiency of the system and also to encourage greater participation, the process flow of transactions and membership criteria for onboarding operating units in BBPS will be streamlined