RBI Governor Shaktikanta Das.
Apart from rate of interest determination, Shaktikanta Das additionally took a number of measures relating to sovereign inexperienced bonds, Retail Direct Scheme, and liquidity protection ratio framework, and many others
RBI Governor Shaktikanta Das on Friday stated the RBI MPC has stored the repo charge unchanged at 6.5 per cent for the seventh time in a row. He projected the FY25 GDP progress at 7 per cent, whereas forecasting FY25 CPI inflation at 4.5 per cent. Apart from these, he additionally took a number of measures relating to sovereign inexperienced bonds, Retail Direct Scheme, and liquidity protection ratio framework, and many others. Here are right now’s high choices by Das.
Trading of Sovereign Green Bonds in International Financial Services Centre (IFSC)
RBI Governor Shaktikanta Das on Friday stated a scheme for funding and buying and selling in Sovereign Green Bonds within the IFSC can be notified shortly. This will facilitate wider non-resident participation in these bonds.
RBI Retail Direct Scheme – Introduction of Mobile App
The RBI Retail Direct Scheme was launched in November 2021. Das stated the RBI now proposes to launch a cell app for accessing the Retail Direct portal. This can be of larger comfort to retail traders and deepen the G-sec market.
Review of Liquidity Coverage Ratio (LCR) Framework
The RBI governor stated a necessity has arisen to undertake a complete evaluation of the LCR framework for banks. A draft round can be issued shortly for stakeholder session.
“Technological developments have enabled bank customers to instantly withdraw or transfer money from their bank accounts. While improving customer convenience, this has also created challenges for banks to deal with potential situations when, due to certain factors, a large number of depositors decide to instantly and simultaneously withdraw their money from banks. The developments in certain jurisdictions last year demonstrated the difficulties it can create for banks to deal with such situations,” Das stated.
Dealing in Rupee Interest Rate Derivative merchandise – Small Finance Banks
At current, Small Finance Banks (SFBs) are permitted to make use of solely Interest Rate Futures (IRFs) for proprietary hedging. It has now been determined to permit SFBs to make use of permissible rupee curiosity by-product merchandise. This will enable additional flexibility to SFBs for hedging their rate of interest danger and improve their resilience.
Enabling UPI for Cash Deposit Facility
Deposit of money by Cash Deposit Machines (CDMs) is primarily being executed by the usage of debit playing cards. Given the expertise gained from card-much less money withdrawal utilizing UPI on the ATMs, it’s now proposed to additionally facilitate deposit of money in CDMs utilizing UPI. This measure will additional improve buyer comfort and make the foreign money dealing with course of at banks extra environment friendly.
UPI Access for Prepaid Payment Instruments (PPIs) by Third Party Apps
At current, UPI funds from Prepaid Payment Instruments (PPIs) will be made solely by utilizing the net or cell app offered by the PPI issuer. It is now proposed to allow the usage of third-social gathering UPI apps for making UPI funds from PPI wallets. This will additional improve buyer comfort and increase adoption of digital funds for small-worth transactions, Das stated.
Distribution of Central Bank Digital Currency (CBDC) by Non-bank Payment System Operators
The CBDC pilots are at the moment in operation with growing variety of use-instances and taking part banks. It is proposed to make CBDC-Retail accessible to a broader section of customers by enabling non-financial institution fee system operators to supply CBDC wallets. This can even facilitate testing of the resiliency of CBDC platform to deal with multi-channel transactions.
The RBI’s financial coverage committee on Friday determined to maintain the repo charge unchanged for the seventh time in a row, at 6.5 per cent. This is in keeping with the analysts’ expectations. The financial coverage stance continues to be ‘withdrawal of accommodation’. RBI has additionally stored the FY25 GDP projection at 7 per cent. It initiatives CPI inflation for 2024-25 at 4.5 per cent.
