RBI MPC Announcements: Repo Rate Remains Unchanged at 6.5%, UPI Lite Payment Limit Raised to ₹500
Live Updates on RBI Monetary Policy: Governor Shaktikanta Das Unveils Decisions
RBI Governor Shaktikanta Das has revealed the outcomes of the Monetary Policy Committee's (MPC) latest decision. Amid the backdrop of global economic uncertainties, the central bank's key interest rate decision and other significant announcements were made. Experts had previously anticipated that the RBI MPC would maintain the current policy rate.
This announcement follows the previous two bi-monthly policy reviews held in April and June. In the June 2022 review, the MPC chose to keep the key repo rate steady at 6.50%.
Aug 10, 2023 11:30 AM IST
'Rise of 250 Basis Points in Rates Impacting Economy,' Affirms RBI Governor
RBI Governor Shaktikanta Das emphasized that the cumulative rate hike of 250 basis points initiated since FY23 is progressively influencing the nation's economy. The cycle of repo rate increments was halted in April this year after witnessing six consecutive rate hikes, accumulating to 250 basis points since May 2022.
Governor Das further highlighted the robust macroeconomic fundamentals of India, which have propelled substantial growth. He underscored India's noteworthy contribution of approximately 15% to the global growth landscape. Additionally, Governor Das noted that the banking sector remains remarkably healthy, with historically high levels of capital.
Aug 10, 2023 11:24 AM IST
Policy Assessment by Ajit Kabi, Banking Analyst at LKP Securities
In the latest meeting of the MPC, RBI has maintained the policy rate at 6.5%. While the inflation situation might not trigger concerns (excluding CPI), there's an upward revision in the CPI forecast for FY24, now at 5.4% compared to the earlier estimate of 5.1%. Furthermore, the real GDP growth projection has been set at 6.6%. The RBI MPC continues its unwavering dedication to aligning inflation with the 4% target and anchoring inflation expectations, as reported by MINT.
Aug 10, 2023 11:13 AM IST
Live Coverage of RBI Policy Meeting: Firm Commitment to Attain 4% CPI Inflation Target
Our efforts in maintaining India's growth momentum have yielded positive results. Despite the moderation in inflation, our task remains incomplete. The presence of inflationary risks persists due to the unpredictability of global food and energy prices, ongoing geopolitical tensions, and weather-related uncertainties.
I emphasize our resolute dedication to achieving the 4% CPI inflation target on a consistent basis. While we consider temporary shocks, if these anomalies exhibit signs of prolonged impact, we are prepared to take necessary actions, stated RBI Governor Shaktikanta Das.
Aug 10, 2023 11:08 AM IST
Reserve Bank Innovation Hub Spearheading Development of Seamless Credit Delivery Platform
The Reserve Bank Innovation Hub is actively working on the creation of a Public Tech Platform for seamless credit delivery, eliminating obstacles in the process.
This innovative platform is poised for a gradual pilot project launch, adopting a meticulous approach. Designed with an open architecture and accessible Application Programming Interface (API) and Standards, it offers a platform for easy integration for all stakeholders within the financial sector.
Aug 10, 2023 11:07 AM IST
RBI Keeps Interest Rates Unchanged as Economic Conditions Improve
In light of the improving macroeconomic conditions, RBI has chosen to uphold the existing interest rates. Since May 2022, the central bank had implemented a series of rate hikes, leading to a cumulative 250 basis point increase in the repo rate.
The RBI's monetary policy assumes a pivotal role in the midst of evolving economic scenarios, both on the domestic and global fronts. It plays a crucial role in shaping India's economic revival, inflation patterns, and overall financial stability.
Aug 10, 2023 11:04 AM IST
Live Coverage of RBI Policy Meeting: Overhauled Regulatory Framework for Infrastructure Debt Funds Unveiled
The Reserve Bank of India has introduced significant revisions to the existing regulatory framework governing Infrastructure Debt Funds (IDFs).
The revised framework encompasses key alterations, including: (i) eliminating the necessity for IDFs to have a sponsor; (ii) granting IDFs the capability to directly fund toll-operate-transfer (ToT) projects; (iii) enabling IDFs to raise funds through External Commercial Borrowings (ECBs); and (iv) making tri-partite agreements optional for Public-Private Partnership (PPP) projects.
Aug 10, 2023 10:55 AM IST
Live Updates from RBI Policy Meeting: New Transparent Framework for Floating Interest Rate EMIs
The Reserve Bank of India (RBI) has proposed the implementation of a transparent framework for the reset of interest rates on floating interest loans.
This framework mandates Regulated Entities to: (i) effectively communicate with borrowers regarding the reset of tenor and/or Equated Monthly Installments (EMIs); (ii) present choices for transitioning to fixed-rate loans or loan foreclosures; (iii) divulge assorted charges associated with these options; and (iv) ensure comprehensive communication of essential information to borrowers.
Aug 10, 2023 10:54 AM IST
RBI Policy Meeting Update: Sensex, Nifty Experience Decline as RBI Maintains Unchanged Repo Rate
Following the Reserve Bank of India's decision to maintain the repo rate at 6.5%, both the Indian equity indices Sensex and Nifty witnessed a decline of more than half a percent each. RBI Governor Shaktikanta Das upheld the FY24 GDP growth projections at 6.5%, while simultaneously revising the CPI inflation forecast for FY24 to 5.4%.
Aug 10, 2023 10:49 AM IST
RBI Holds Steady After a Series of Rate Hikes: A Look Back
Over the period between May 2022 and February 2023, the central bank enacted a series of rate hikes, elevating the repo rate by 250 basis points to reach 6.5%. However, in the subsequent April review of the monetary policy, the RBI opted to hit the pause button. A basis point denotes a one-hundredth of a percentage point. The repo rate signifies the rate at which commercial banks engage in borrowing money through the sale of their securities to the Reserve Bank, while the reverse repo rate represents the rate at which the central bank itself borrows funds.
These rates possess critical significance in stimulating credit and encouraging investments by businesses to fuel economic growth. An increase in these rates results in higher borrowing costs for businesses, curbing the money supply and consequently tempering inflation – a pivotal objective underlying the decision to raise benchmark rates.
Aug 10, 2023 10:48 AM IST
RBI Governor Acknowledges Indian Financial Sector's Stability and Resilience
The RBI governor has recognized the stability and resilience exhibited by the Indian financial sector, a sentiment mirrored in its consistent growth figures.
Aug 10, 2023 10:47 AM IST
RBI's Monetary Policy Remains Centered on Accommodation Withdrawal
Following a two-day meeting of the six-member monetary policy committee, Governor Shaktikanta Das expressed that the central bank's series of policy rate hikes, indicating interest rate raises, appear to be yielding results.
However, the overarching theme of the monetary policy remains the "withdrawal of accommodation," as highlighted by the governor. In essence, the RBI's focus will be on constraining the money supply within the economy to manage inflationary pressures.
Aug 10, 2023 10:41 AM IST
RBI Enables Offline UPI Payments Using Near-Field Communication; Raises UPI Lite Payment Limit to ₹500 from ₹200: Das
Aug 10, 2023 10:40 AM IST
RBI Policy Live: Governor Shaktikanta Das States that Withdrawal of ₹2,000 Note is a Temporary Measure
During Thursday's MPC meeting, RBI Governor Shaktikanta Das mentioned that the withdrawal of the ₹2,000 note is a temporary step. Once the complete removal of the ₹2,000 denomination notes is accomplished, there will be sufficient liquidity in the system, according to Governor Das.
In May of this year, the Reserve Bank of India (RBI) announced the withdrawal of ₹2,000 denomination banknotes from circulation and specified that all notes must be exchanged before September 30.
Aug 10, 2023 10:38 AM IST
RBI Policy Live: Banks Mandated to Uphold Incremental CRR of 10%
As part of the latest RBI policy, banks are required to uphold an incremental Cash Reserve Ratio (CRR) of 10% on the rise in their Net Demand and Time Liabilities (NDTL) between May 19 and July 28, effective from the fortnight beginning on August 12, revealed RBI Governor Shaktikanta Das.
Aug 10, 2023 10:36 AM IST
RBI Introduces Plan for Enabling Borrowers to Transition to Fixed Interest Rate System
The Reserve Bank of India (RBI) has unveiled a proposal for establishing a framework that permits borrowers to switch to a fixed interest rate regime. The proposal aims to create a transparent mechanism for the resetting of interest rates on loans with floating interest rates.
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