For the fifth consecutive time, the Reserve Bank of India’s (RBI) Monetary Policy Committee on Friday decided to keep the repo rate unchanged at 6.50%. RBI Governor Shaktikanta Das also announced that the growth projection has been raised to 7% for the current financial year from the earlier 6.5%. The unchanged repo rate signifies a strategic move to support continued economic stability amidst both domestic and global uncertainties.
Das added that the monetary policy will remain actively disinflationary, adding that the decision to keep the repo rate unchanged was taken unanimously. For those unversed, the repo rate is the rate through which the RBI lends money to commercial banks.
Meanwhile, RBI Governor mentioned that recent indicators for food prices at frequent intervals suggest a potential increase in prices for essential vegetables, which can possibly contribute to a rise in food inflation. Expressing concerns on persistently high global sugar prices, he, however, added that domestic milk prices have stabilized.
Shaktikanta Das also announced a hike in the transaction limit for hospitals and education-related payments through Unified Payments Interface (UPI), which has now been raised from Rs. 1 lakh per transaction to Rs. 5 lakh per transaction.
The RBI Governor also announced that it is in process of creating a cloud infrastructure dedicated to the financial industry of Bharat, with the aim of improving data security and privacy. Governor Das mentioned that the implementation of this facility will occur gradually.
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