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The Reserve Bank of India (RBI) Governor Shaktikanta Das announced the third bi-monthly monetary policy for FY24 on Thursday. The three-day meeting of the six member Monetary Policy Committee (MPC) of RBI was held from August 8 to 10.
RBI Policy Meeting Highlights
- Reserve Bank of India (RBI) has retained key policy repo rate retained at 6.5 per cent. This is the third meeting on the trot that the MPC decided to maintain the status quo on the repo rate.
- RBI has maintained that the focus would be on withdrawal of accommodative policy stance to ensure that inflation progressively aligns with target, while supporting growth.
- It has retained GDP growth projection for FY24 at 6.5 per cent.
- RBI has marginally revised inflation forecast to 5.4 per cent. According to the central bank, spike in vegetable prices, led by tomatoes, may exert sizeable upside pressures on near-term inflation trajectory.
- RBI will take steps to ensure greater transparency in interest rate reset of EMI-based floating interest loans. The borrowers to get options of switching to fixed rate loans or foreclosure of loans.
- The Reserve Bank is planning to artificial intelligence (AI) in UPI payments. Near Field Communication (NFC) technology will be deployed in offline payments via in UPI-Lite.
- RBI proposes to enhance transactions limits for small value digital payments to ₹500 from ₹200 in UPI Lite.
- To absorb surplus liquidity generated by various factors, including return of ₹2000 notes to the banking system, RBI has asked banks to maintain an incremental Cash Reserve Ratio (ICRR) of 10 per cent on the increase in their deposits between May 19 and July 28.
- RBI Governor Shaktikanta Das has announced that the cash reserve ratio (CRR) remains unchanged at 4.5 per cent
- According to RBI projections, current account deficit to remain eminently manageable during FY24
- Next meeting of the RBI rate setting panel (MPC) will be held October 4-6.
| Policy Repo Rate | 6.50% |
| Standing Deposit Facility Rate | 6.25% |
| Marginal Standing Facility Rate | 6.75% |
| Bank Rate | 6.75% |
| Fixed Reverse Repo Rate | 3.35% |
| CRR | 4.50% |
| SLR | 18.00% |
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