RBI's June 2024 MPC Meeting: Key Updates and Decisions
The MPC meeting chaired by RBI governor took place from June 5 to June 7, 2024, while the next MPC meeting will take place on August 6-8, 2024.
image for illustrative purpose
Hyderabad: The Reserve Bank of India’s Monetary Policy Committee (MPC) chaired by governor Shaktikanta Das has kept the repo rate unchanged. The current repo rate stands at 6.5%, voted by 4-2 majority.
The Monetary Policy Committee (MPC) of the RBI deciding to keep the repo rate unchanged marks the eighth consecutive occasion such a decision has been made.Bottom of Form
Similarly, the standing deposit facility (SDF) rate remains unchanged at 6.25 percent, while both the marginal standing facility (MSF) rate and the Bank Rate remain steady at 6.75 percent.
The second bi-monthly monetary policy meeting for this year financial year was held on 5th, 6th and 7th June 2024.
While RBI retained inflation forecast for FY205 at 4.5%, it raised the GDP forecast to 7.2% from 7% for Q1 from earlier estimates.
Likewise, the GDP growth for 2024-25 Q2, Q3 and Q4 is projected at 7.3%, 7.2% and 7.33% respectively.
The better GDP estimates released by the National Statistical Office (NSO) positioned India’s real gross domestic product (GDP) growth at 8.2 per cent in 2023-24, paving way for reducing chances in further repo rate.
The Consumer Price Index (CPI) inflation for the fiscal year 2024-25 is projected at 4.5 percent, with the first quarter at 4.9 percent, the second quarter at 3.8 percent, the third quarter at 4.6 percent, and the fourth quarter at 4.5 percent."
The Reserve Bank of India (RBI) is contemplating a revision in the definition of bulk deposits applicable to Scheduled Commercial Banks (SCBs), excluding Regional Rural Banks (RRBs), Small Finance Banks (SFBs), and Local Area Banks.
Presently pegged at Rs 2 crore, the suggested adjustment would raise the threshold to Rs 3 crore for SCBs and SFBs, while for Local Area Banks, it would be set at Rs 1 crore, harmonizing with the standards for RRBs.
Detailed guidelines on this potential alteration are anticipated to be released in the near future.
RBI intends to streamline export and import regulations governed by the Foreign Exchange Management Act (FEMA), 1999, with the goal of providing enhanced operational flexibility to Authorised Dealer banks.
This initiative seeks to simplify procedures, aligning with shifts in global trade dynamics.
RBI will make draft regulations accessible for feedback on its official website by June 2024 before reaching finalisation.
RBI is suggesting the creation of a Digital Payments Intelligence Platform to strengthen security in digital transactions and combat payment fraud by enabling real-time data sharing across different payment systems.
A committee, led by AP Hota, former MD & CEO of NPCI, has been established to provide recommendations within two months on the setup of this infrastructure.
To counter payment fraud by facilitating real-time data sharing across various payment systems and enhance security in digital transactions, RBI has proposed a Digital Payments Intelligence Platform. A committee, chaired by AP Hota, former MD & CEO of NPCI, has been formed to deliver recommendations within two months regarding the implementation of this infrastructure.
The MPC meeting chaired by RBI governor took place from June 5 to June 7, 2024, while the next MPC meeting will take place on August 6-8, 2024.
