RBI Governor Shaktikanta Das.
Other than rate of interest choice, Shaktikanta Das additionally took a number of measures concerning sovereign inexperienced bonds, Retail Direct Scheme, and liquidity protection ratio framework, and so forth
RBI Governor Shaktikanta Das on Friday stated the RBI MPC has saved the repo price unchanged at 6.5 per cent for the seventh time in a row. He projected the FY25 GDP progress at 7 per cent, whereas forecasting FY25 CPI inflation at 4.5 per cent. Other than these, he additionally took a number of measures concerning sovereign inexperienced bonds, Retail Direct Scheme, and liquidity protection ratio framework, and so forth. Listed here are right this moment’s high selections by Das.
Buying and selling of Sovereign Inexperienced Bonds in Worldwide Monetary Providers Centre (IFSC)
RBI Governor Shaktikanta Das on Friday stated a scheme for funding and buying and selling in Sovereign Inexperienced Bonds within the IFSC can be notified shortly. This can facilitate wider non-resident participation in these bonds.
RBI Retail Direct Scheme – Introduction of Cell App
The RBI Retail Direct Scheme was launched in November 2021. Das stated the RBI now proposes to launch a cellular app for accessing the Retail Direct portal. This can be of better comfort to retail traders and deepen the G-sec market.
Assessment of Liquidity Protection Ratio (LCR) Framework
The RBI governor stated a necessity has arisen to undertake a complete overview of the LCR framework for banks. A draft round can be issued shortly for stakeholder session.
“Technological developments have enabled financial institution clients to immediately withdraw or switch cash from their financial institution accounts. Whereas bettering buyer comfort, this has additionally created challenges for banks to take care of potential conditions when, because of sure components, numerous depositors resolve to immediately and concurrently withdraw their cash from banks. The developments in sure jurisdictions final 12 months demonstrated the difficulties it could create for banks to take care of such conditions,” Das stated.
Dealing in Rupee Curiosity Fee Spinoff merchandise – Small Finance Banks
At current, Small Finance Banks (SFBs) are permitted to make use of solely Curiosity Fee Futures (IRFs) for proprietary hedging. It has now been determined to permit SFBs to make use of permissible rupee curiosity spinoff merchandise. This can enable additional flexibility to SFBs for hedging their rate of interest threat and improve their resilience.
Enabling UPI for Money Deposit Facility
Deposit of money by means of Money Deposit Machines (CDMs) is primarily being carried out by means of the usage of debit playing cards. Given the expertise gained from card-less money withdrawal utilizing UPI on the ATMs, it’s now proposed to additionally facilitate deposit of money in CDMs utilizing UPI. This measure will additional improve buyer comfort and make the foreign money dealing with course of at banks extra environment friendly.
UPI Entry for Pay as you go Fee Devices (PPIs) by means of Third Celebration Apps
At current, UPI funds from Pay as you go Fee Devices (PPIs) might be made solely through the use of the online or cellular app offered by the PPI issuer. It’s now proposed to allow the usage of third-party UPI apps for making UPI funds from PPI wallets. This can additional improve buyer comfort and enhance adoption of digital funds for small-value transactions, Das stated.
Distribution of Central Financial institution Digital Forex (CBDC) by means of Non-bank Fee System Operators
The CBDC pilots are at present in operation with growing variety of use-cases and collaborating banks. It’s proposed to make CBDC-Retail accessible to a broader section of customers by enabling non-bank fee system operators to supply CBDC wallets. This will even facilitate testing of the resiliency of CBDC platform to deal with multi-channel transactions.
The RBI’s financial coverage committee on Friday determined to maintain the repo price unchanged for the seventh time in a row, at 6.5 per cent. That is in step with the analysts’ expectations. The financial coverage stance continues to be ‘withdrawal of lodging’. RBI has additionally saved the FY25 GDP projection at 7 per cent. It tasks CPI inflation for 2024-25 at 4.5 per cent.
