ACTION PUNJAB NEWS Desk: After the three-day bi-monthly monetary policy committee (MPC) meeting of the RBI which began on February 6th, RBI Governor Shaktikanta Das addressed a significant briefing on Thursday regarding the decisions made by the Monetary Policy Committee (MPC).
The RBI typically conducts six bimonthly meetings in a financial year, where it deliberates interest rates, money supply, inflation outlook, and various macroeconomic indicators.
Also Read: RBI leaves repo rate unchanged at 6.5% for sixth straight time
Big announcements by RBI Governor
- The Reserve Bank of India (RBI), while maintaining the status quo in the repo rate, pegged India’s GDP growth for the next financial year 2024-25 (April-March) at 7 per cent.
- RBI pegged India’s retail inflation projections for 2024-25 at 4.5 per cent, with Q1 at 5.0 per cent, Q2 at 4.0 per cent, Q3 at 4.6 per cent, and Q4 at 4.7 per cent, with risks evenly balanced.
- The Monetary Policy Committee of the RBI, in its February review meeting, unanimously decided to keep the policy repo rate unchanged at 6.5 per cent, thus maintaining status quo for the sixth straight time.
- RBI also announces that liquidity is to be actively managed by the Reserve Bank of India (RBI)
- Inflation is moving closer to the target and growth is holding better than expected.
- The Reserve Bank of India (RBI) also extended the requirement of a key fact statement to all retail and MSME loans in a bid to enhance transparency.
- The Reserve Bank had mandated certain categories of lenders to provide the borrower a Key Fact Statement (KFS) containing essential information such as the all-inclusive annual percentage rate (APR) and recovery and grievance redress mechanisms.
- The Reserve Bank of India (RBI) also announced that the exchange of Indian rupee will remain stable this year also.
- The RBI also proposed a principle-based principle-based framework for the authentication of digital transactions. The Reserve Bank has proactively facilitated introduction of various mechanisms such as Additional Factor of Authentication (AFA) for securing digital payments.
Also Read: India sees US as weak, played smart by staying close with Russia : Nikki Haley