Live RBI News : Highlights of the RBI MPC Meeting 2024 Shaktikanta Das, the governor of the Reserve Bank of India (RBI), declared the first monetary policy for the 2024–25 fiscal year on Friday.
The Monetary Policy Committee (MPC) of the RBI, which sets interest rates, held a two-day review meeting that ended Thursday, April 5. For the sixth time in a row, the RBI chose to maintain the 6.5% key policy repo rate. The governor Das-led six-member MPC also agreed to keep the policy at “withdrawal of accommodation.” For FY25, the RBI has estimated that India’s real GDP growth rate will be 7%. The anticipated CPI inflation rate for FY25 is 4.5%. Follow along for live updates from the RBI MPC Meeting 2024 here
Table of Contents
Highlights of the RBI MPC Meeting 2024: The major features of RBI policy are as follows
Highlights of the RBI MPC Meeting 2024: The first monetary policy of FY25 was announced by RBI Governor Shaktikanta Das. The main points of the RBI’s April policy are as follows:
Policy Actions: Live RBI News
- The repo rate remained at 6.5%
- The “withdrawal of accommodation” policy stance kept the GDP growth estimate for FY25 at 7%. The forecasts are as follows: 7.1% for Q1, 6.9% for Q2, 7% for Q3, and 7% for Q4.
- 4.5% CPI inflation is projected for FY25. The following is a thorough inflation forecast: 4.9% in Q1, 3.8% in Q2, 4.6% in Q3, and 4.5% in Q4.
Non-political actions:
- To be disclosed is the plan for trading sovereign green bonds at the IFSC.
- launch of a mobile application to use RBI’s Retail Direct Scheme for GSec market participation
- A draft circular for banks’ LCR framework will soon be released.
- handling products derived from the rupee interest rate for all small finance institutions
- Activating UPI for the Cash Deposit Service
- Prepaid Payment Instruments (PPIs) can access UPI via third-party applications.
- CBDC distribution via non-bank payment system providers
What are the new guidelines of RBI?
The decision on which network to use for a customer’s card is made by the card issuer, whether a bank or a non-bank institution. RBI guidelines change: The Reserve Bank of India (RBI) said on March 6, 2024, that card issuers should not enter into any agreement with card networks.
What is the RBI Monetary Policy Committee?
The Governor of the Reserve Bank of India (RBI) chairs the Monetary Policy Committee (MPC). The objective of the Monetary Policy Committee (MPC) was to set the benchmark policy interest rate (repo rate) to keep inflation under control.
monetary policy instruments : Live RBI News
Reverse Repo Rate: The interest rate at which the Reserve Bank absorbs liquidity overnight from banks against the collateral of eligible government securities under the LAF.
Accommodation Facility (LAF) : Live RBI News
LAF includes overnight accommodation. In the form of repo auctions. Progressively, the Reserve Bank has increased the proportion of liquidity received under variable-rate repo auctions by fine-tuning the range of tenors. The term repo is intended to help develop an interbank term money market, which in turn can set market-based benchmarks for the pricing of loans and deposits, and hence improve the transmission of monetary policy. The Reserve Bank also conducts variable interest rate reverse repo auctions under market conditions.
Cash Reserve Ratio (CRR)
An average daily balance that a bank is required to maintain with the Reserve Bank as a percentage of its Net Demand and Time Liabilities (NDTL) as specified by the Reserve Bank from time to time. The Gazette of India can inform
Open Market Operations
These involve both the purchase and sale of government securities for injection and absorption of sustainable liquidity respectively
Market Stabilization Scheme
This instrument for monetary management was introduced in 2004. Surplus liquidity of a more permanent nature arising from large capital inflows is absorbed through the sale of short-dated government securities and treasury bills. So much cash was raised that the Reserve Bank had a separate government account
