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