On Friday, Governor Shaktikanta Das of the Reserve Bank of India (RBI) declared the second bi-monthly monetary policy for the fiscal year 2024–25. Following the outcomes of the 2024 Lok Sabha election, this is the first RBI policy. By a vote of 4 to 2, the six-member Monetary Policy Committee (MPC), led by the RBI Governor, agreed to maintain the benchmark repo rate at 6.5% for the eighth consecutive month. It also made the decision to stick to its “withdrawal of accommodation” policy. The RBI increased its GDP growth prediction for FY25 from 7% to 7.2%. The 4.5% inflation target for FY25 was maintained by the central bank.
Highlights of the RBI MPC Meeting: The following are the main lessons from today’s RBI Policy:
1. Repo rate unchanged at 6.5%.
2. Policy stance of ‘withdrawal of accommodation’ maintained
3. MPC members voted by 4:2 majority to maintain status quo
4. FY25 GDP growth forecast raised to 7.2%. The quarterly projections are – Q1 at 7.3%; Q2 at 7.2%; Q3 at 7.3% and Q4 at 7.2%.
5. CPI inflation estimates for FY25 retained at 4.5%. Detailed inflation forecast: Q1 at 4.9%; Q2 at 3.8%; Q3 at 4.6% and Q4 at 4.5%
Developmental and Regulatory Policies:
1. Review of limit of Bulk Deposits for Scheduled Commercial Banks, Small Finance Banks and Local Area Banks
2. Rationalisation of Export and Import regulations under Foreign Exchange Management Act
3. Setting up a Digital Payments Intelligence Platform
4. Inclusion of recurring payments for Fastag, National Common Mobility Card (NCMC), etc. with auto-replenishment facility under the e-mandate framework
5. Introducing auto-replenishment of UPI Lite wallet – Inclusion under the e-mandate framework
6. Launch of third edition of RBI Hackathon HARBINGER 2024 – Innovation for Transformation
Author: Rohit Singh
Rohit Singh is passionate individual currently pursuing a degree in Journalism and Mass communication , driven by a desire to do something in the media industry . Driven by a desire to revolutionize media, I aspire to lead by example and instigate a shift towards more responsible and impactful journalism. I love to learn new things and try to adapt them
