Check Key Highlights from RBI’s Bi-Monthly Monetary Policy Statement

The Reserve Bank of India (RBI) unveiled a series of key decisions aimed at shaping the nation’s economic landscape in a comprehensive bi-monthly policy statement. While keeping the benchmark interest rate at 6.5%, the RBI increased the UPI transaction limit, specifically targeting payments to hospitals and educational institutions, from Rs 1 lakh to Rs 5 lakh. The central bank also expressed optimism by raising its GDP growth forecast for the current fiscal year to 7% from 6.5% previously. Furthermore, the RBI emphasized its commitment to economic stability by maintaining the average retail inflation forecast for the fiscal year 2023-24 at 5.4%. The following are the key points from the RBI’s Bi-Monthly Monetary Policy Statement.

1. RBI maintains benchmark interest rate at 6.5%
2. UPI transaction limit for payments to hospitals and educational institutions set to increase from Rs 1 lakh to Rs 5 lakh
3. GDP growth projection for the current fiscal raised to 7% from the previous 6.5%
4. GDP growth forecast for December and March quarters set at 6.5% and 6%, respectively
5. Average retail inflation projection retained at 5.4% for 2023-24
6. Inflation outlook influenced by uncertain food prices; intermittent vegetable price shocks may impact inflation in November and December
7. The rupee shows low volatility compared to other emerging market currencies in 2023
8. Rupee stability attributed to improving macroeconomic fundamentals and resilience to global challenges
9. Forex reserves reach USD 604 billion as of December 1, ensuring confidence in meeting external financing requirements comfortably
10. RBI emphasizes vigilance and readiness to act based on the evolving economic outlook
11. India positioned better to withstand uncertainties compared to many other countries
12. The proposed increase in e-mandate for recurring payments to Rs 1 lakh from the current Rs 15,000
13. RBI announces plans to establish a cloud facility for the financial sector to enhance data security and privacy
14. The next monetary policy committee meeting is scheduled for February 6-8, 2024.