In a shocking transfer, the RBI on Thursday determined to maintain the repo fee unchanged at 6.50 per cent after mountaineering by 250 foundation factors repeatedly since May 2022. It additionally revised downwards India’s FY24 inflation projection to five.2 per cent from 5.3 per cent estimated earlier, and raised FY24 GDP progress forecast to six.5 per cent from 6.4 per cent earlier. Here’re all of the bulletins made by RBI Governor Shaktikanta Das on Thursday:
Repo Rate Unchanged
The key announcement made by the RBI governor was conserving the important thing repo fee unchanged at 6.5 per cent, opposite to a 25-basis level hike anticipated by the market. The reverse repo fee and CRR additionally remained unchanged at 3.35 per cent and 4.5 per cent, respectively.
The RBI additionally saved the SDF unchanged at 6.25 per cent, and MSF and Bank Rates maintained at 6.75 per cent. The SDF is the decrease band of the rate of interest hall, whereas the MSF is the higher band.
FY24 Inflation Lowered
The RBI on Thursday revised downwards the CPI inflation projection to five.2 per cent for the present monetary yr, in contrast with the sooner forecast of 5.3 per cent. Assuming an annual common crude oil value (Indian basket) of $85 per barrel and a traditional monsoon, Q1 CPI inflation is projected at 5.1 per cent; Q2 at 5.4 per cent; Q3 at 5.4 per cent; and This fall at 5.2 per cent.
While presenting the primary bi-monthly financial coverage assertion of FY24, RBI Governor Shaktikanta Das stated, “Looking forward, the expectation of a report rabi harvest bodes nicely for the easing of meals value pressures. There are already proof of a correction in wheat costs in March on supply-side interventions by the federal government. The affect of the current unseasonal rains in some elements of the nation, nonetheless, must be watched.”
FY24 GDP Growth Raised
The Reserve Bank of India raised India’s GDP forecast for FY24 to 6.5 per cent, from 6.4 per cent forecast earlier. The RBI governor said India’s economy is expected to have grown 7 per cent in FY23.
Stating that India’s economic activity remains resilient, he said the country’s real GDP growth for FY24 is projected at 6.5 per cent, with Q1 at 7.8 per cent, Q2 at 6.2 per cent, Q3 at 6.1 per cent, and Q4 at 5.9 per cent.
The RBI’s projection of 6.5 per cent for FY24 is close to the Economic Survey’s forecast. The Survey had projected a baseline growth rate of 6.5 per cent with a range of 6-6.8 per cent. The 7 per cent projection of the RBI for FY23 is the same as the official second advanced estimate released in February.
UPI: Operation of Pre-Sanctioned Credit Lines at Banks Allowed
Expanding the score of UPI, the RBI has now allowed operation of pre-sanctioned credit lines at banks through the UPI. This initiative will further encourage innovation.
Recently, RuPay bank cards had been permitted to be linked to UPI. This was along with the present facility of linkage of UPI with deposit accounts.
PRAVAAH Portal For Regulatory Processes
To simplify and streamline processes to receive licence from the RBI or regulatory approval, the RBI has decided to have a secured web-based centralised portal named as ‘PRAVAAH’ (Platform for Regulatory Application, Validation And AutHorisation). This is in line with the Union Budget 2023-24 announcement.
Currently, the processes for entities to make applications seeking licence/ authorisation or regulatory approvals from the Reserve Bank under various statutes/ regulations take place in both online and off-line modes.
“This measure will bring greater efficiencies into regulatory processes and facilitate ease of doing business for the regulated entities of the Reserve Bank,” Das stated.
Developing an Onshore Non-deliverable Derivative Market
The RBI has now allowed banks with IFSC Banking Units (IBUs) to supply non-deliverable overseas trade by-product contracts (NDDCs) involving the Indian rupee to resident customers within the onshore market. Currently, it’s accessible for non-residents.
“This measure will additional deepen the foreign exchange market in India and supply enhanced flexibility to residents in assembly their hedging necessities,” the RBI governor stated.
Centralised Portal for Unclaimed Deposits
To help depositors or beneficiaries in getting back unclaimed deposits, the RBI has decided to develop a web portal to enable search across multiple banks for possible unclaimed deposits.
Currently, the depositors or beneficiaries of unclaimed bank deposits of 10 years or more have to go through the websites of multiple banks to locate such deposits.
Grievance Redress Mechanism Related to Credit Information Companies
To enhance consumer protection, the RBI has proposed to put in place a number of measures: (i) a compensation mechanism for delayed updation/ rectification of credit information reports; (ii) a provision for SMS/email alerts to customers whenever their credit information reports are accessed; (iii) a timeframe for inclusion of data received by CICs from Credit Institutions; and (iv) disclosures on customer complaints received by CICs.
Recently, credit information companies (CICs) like CIBIL and Experian were brought under the purview of the Reserve Bank Integrated Ombudsman Scheme (RB-IOS).
Read all of the Latest Business News right here
