RBI Monetary Policy Highlights: 50% Of Rs 2,000 Notes In Circulation Have Come Back, Shaktikanta Das Says
RBI Monetary Policy Live: A status quo on repo rate, amid easing inflation and steady GDP growth in Asia's third largest economy.
RBI Monetary Policy: Key Highlights
India's Monetary Policy Committee has decided to keep the benchmark repo rate unchanged for a second straight meeting, amid easing inflation and steady GDP growth in Asia's third largest economy.
The MPC, however, was ready to act should the situation so warrant.
Following the review, the MPC decided:
To keep the repo rate unchanged at 6.5% unanimously.
The SDF rate, pegged 25 basis points below the repo rate, is at 6.25%.
The MSF rate, which is 25 basis points above the repo rate, is at 6.75%.
The RBI has pegged India's GDP growth rate at 6.5% in FY24, as against 7.2% in FY23, with inflation seen at 5.1% in the ongoing fiscal.
The rate-setting panel will not hesitate to take further action as may be required in it's future meetings, RBI Governor Shaktikanta Das said in his speech on Thursday.
The committee had raised the benchmark repo rate by 250 basis points in the last cycle before opting for a pause in April and in June.
RBI Monetary Policy: On Banks' Participation In Variable Rate Auctions
Banks have been cautious in participating in RBI's variable rate auctions, so much so that the lenders are cutting their deposit and lending rates.
"Bank are free to decide their rates, but if they are doing it in anticipation of action taken by RBI, that would be wrong," the central bank says. Banks are cautious ahead of imminent advance tax outflows, it says.
RBI Monetary Policy: Implementation Of ECL Guidelines
The Reserve Bank of India has received comments from all stakeholders on expected credit loss guidelines.
"It's not correct that June 30 is the date when expected credit loss guidelines will be implemented. There is no need for panic on implementation of expected credit loss guidelines," RBI says.
"We are mindful of the fact that banks will need time to apply expected credit loss guidelines," the central bank says.
Rs 1.8 Lakh Crore Of Rs 2,000 Notes Received So Far
The Reserve Bank of India has so far received Rs 2,000 notes amounting to Rs 1.8 lakh crore, Governor Shaktikanta Das says. As on March 31, around Rs 3.62 lakh crore of Rs 2,000 notes was in circulation.
Around 85% of the notes received so far have been in deposits.
RBI To Make CBDC QR Code Interoperable With UPI
The Reserve Bank of India has decided to make the QR code associated with its central bank digital currency (CBDC) interoperable with the unified payments interface (UPI). That's aimed at achieving one million users in the shortest possible time.
Das Sums Up RBI Monetary Policy In 6 Points
RBI Governor Shaktikanta Das has provided a snapshot of the latest monetary policy, in six points:
RBI MPC decided to pause on rate action
Headline inflation has eased, including all components
Indian economy presents story of resilience. The prospects for growth steadily improving, becoming broad-based.
Healthy twin balance sheets augur well for GDP growth.
External sector eminently viable as reflected in current account situation, stability of Rupee, build up of forex reserves.
RBI’s liquidity management will be nimble, two-sided.
