Shaktikanta Das News

MUMBAI : The Reserve Bank of India’s (RBI) move to allow banks more flexibility in managing funds over weekends and on holidays will help smoothen the functioning of the money market and in reducing cost, according to traders. The central bank governor Shaktikanta Das, while announcing RBI’s monetary policy review said it will allow banks to move and borrow between the standing deposit facility (SDF) and marginal standing facility (MSF) during weekends and holidays from 30 December.

Bank of India (RBI) on Friday said the Indian economy may expand 7% in the current fiscal year against its previous projection of 6.5%, taking comfort from rising rural consumption, increasing capital expenditure, and a slew of high-frequency indicators. Still, it does not expect inflation to cross its estimate of 5.4%, even as growth kicks into high gear in the world’s fifth-largest economy.

RBI Raises UPI Transaction Limits: The Reserve Bank of India announced key revisions of UPI payment limits on Friday. The RBI has raised the UPI payment limit to hospitals and educational institutions to Rs 5 lakh. Previously it was Rs 1 lakh. RBI has also hiked the cap for e-mandates for recurring payments to Rs 1 lakh.

RBI Governor Shaktikanta Das said that notwithstanding the progress made on lowering inflation, the regulator’s 4% target was yet to be reached. The Reserve Bank kept its inflation forecast unchanged, projecting CPI-based inflation at 5.4% for FY24.

At the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meeting on December 08, 2023, the RBI Governor Shaktikanta Das announced the MPC’s decision to maintain the repo rate at 6.5 per cent. After a three-day bi-monthly meeting, the committee emphasized its dedication to maintaining its existing policy stance. It was evident from the announcement that the RBI has no intent to withdraw its accommodation stance regarding its decision on repo rates. 

The regulator has also decided to come out with a unified regulatory framework on connected lending for all the regulated entities to avoid gaps in regulation. «The extant guidelines on connected lending are limited in scope and are not applicable uniformly to all regulated entities,» RBI Governor Shaktikanta Das said Friday, while announcing the monetary policy. Connected lending or lending to persons who are in a position to control or influence the decision of a lender can be of concern, if the lender does not maintain an arm’s length relationship with such borrowers. Such lending can involve moral hazard leading to compromise in pricing and credit management, RBI said. It may be noted that ICICI Bank chief executive Chanda Kochhar had to step down in 2018 for charges of favouring Videocon Group for the loan.

The regulator has also decided to come out with a unified regulatory framework on connected lending for all the regulated entities to avoid gaps in regulation. «The extant guidelines on connected lending are limited in scope and are not applicable uniformly to all regulated entities,» RBI Governor Shaktikanta Das said Friday, while announcing the monetary policy. Connected lending or lending to persons who are in a position to control or influence the decision of a lender can be of concern, if the lender does not maintain an arm’s length relationship with such borrowers. Such lending can involve moral hazard leading to compromise in pricing and credit management, RBI said. It may be noted that ICICI Bank chief executive Chanda Kochhar had to step down in 2018 for charges of favouring Videocon Group for the loan.

RBI MPC meeting outcome: In 5th monetary policy meeting of teh financial year 2023-24, the Reserve Bank of India (RBI) has decided to keep repo rate unchanged at 6.50 per cent. In fact, the RBI raised its gross domestic product (GDP) forecast for current fiscal by 50 bps, which has gone down well among markets and economic experts.

RBI Governor Shaktikanta Das said while announcing a proposal to establish data storage facilities for financial institutions (FIs) in India on December 8, 2023. "Banks and financial entities are maintaining an ever-increasing volume of data. Many of them are utilising various public and private cloud facilities for this purpose.

RBI Monetary Policy (MPC) Meet: Reserve Bank of India Governor Shaktikanta Das made two announcements related to the Unified Payments Interface (UPI) in India, one specific and one with broader ramifications for the online payments ecosystem. The first announcement Das said is for "enhancing UPI transaction limit for specific categories" such as payments to hospitals and educational institutions from the current ₹1 lakh to ₹5 lakh. "The limit for various categories of UPI transactions has been reviewed from time to time.

RBI) Monetary Policy Committee (MPC) projects CPI inflation at 5.4 percent in 2023-24 (FY24), unchanged from earlier. For Q3FY24 (September-December), the projection has been slightly lowered to 5.4 percent from 5.6 percent. The forecast for Q4FY24 (January - March) remains unchanged at 5.2 percent.

This new measure will come into effect from December 30 and will be reviewed after six months. The Reserve Bank of India today decided to keep the policy rate unchanged at 6.5% for the fifth time in a row as it maintains a tight vigil on inflation.

RBI Monetary Policy (MPC) Meet: The Reserve Bank of India's MPC has kept repo rates unchanged at 6.5 percent, RBI Governor Shaktikanta Das announced on December 8. “The RBI MPC has decided unanimously to keep the policy repo rate unchanged at 6.50 percent. Consequently, the standing deposit facility (SDF) rate remains at 6.25 percent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 percent," Das said.

Bank of India (RBI) refrained from surprising the market as on expected lines it kept policy rates and stance unchanged on Friday, December 8. The Monetary Policy Committee (MPC) of the RBI unanimously decided to keep the repo rate unchanged at 6.5 per cent after its December meeting. The MPC maintained the policy stance of 'withdrawal of accommodation' by the majority of 5 out of 6 members.

The Reserve Bank of India left the inflation aim unchanged at 5.4%. In the August policy, the RBI had raised its FY24 inflation forecast to 5.4% from 5.1%. The Reserve Bank of India's (RBI) Monetary Policy Committee unanimously decided to keep the repo rate- key lending rate- unchanged at 6.5% for the fifth time in a row.

MPC) unanimously opted to maintain the repo rate at 6.5 per cent for the fifth consecutive time, RBI Governor Shaktikanta Das said on Friday. The decision, following a three-day bi-monthly meeting, underscores the committee's commitment to its current policy stance. Governor Das highlighted the central bank's continued focus on the withdrawal of accommodation stance.

RBI Monetary Policy (MPC) Meet Live Updates: Reserve Bank of India (RBI) Governor Shaktikanta Das will unveil the fifth monetary policy of the financial year 2023-24 today at 10:00 am after a two-day review, amid strong macroeconomic fundamentals and resilient domestic markets. The review by the six-member Monetary Policy Committee (MPC) led by Das will likely indicate the course RBI will adopt in the remainder of the financial year as it seeks to bring inflation under the 4 per cent target amid high food prices.

RBI) as equity benchmarks Nifty 50 and Sensex snapped their seven-day winning streak in the previous session. Profit booking in select heavyweights, sell -off by foreign investors amid weak global cues contributed to the fall in markets on Thursday, December 7. Nifty 50 index closed at 20,901.15, down 37 points, or 0.17 per cent and the 30-share Sensex settled 132 points, or 0.19 per cent, lower at 69,521.69.

Reserve Bank of India’s rate-setting panel on December 6 commenced the fifth meeting this financial year. India’s relatively favourable macroeconomic indicators give the central bank even more confidence to chart its own path, even as it remains wary of worrying external factors. Retail inflation eased from a four-month-high in October at 4.87 per cent while India’s gross domestic product (GDP) growth rate trumped analyst expectations in Q2FY24 at 7.8 per cent. The Monetary Policy Committee’s priority is clear, as said by the RBI Governor Shaktikanta Das, inflation over growth and draining out excess liquidity from the system. To this extent, the RBI is expected to keep benchmark lending rates unchanged, for the fifth straight time. The MPC’s decisions have been in stark contrast to some advanced economies, who continue their fight to tame sticky price pressures. Moreover, MPC members have perhaps afforded doing so as it has enjoyed optimism on certain high-frequency indicators in the fastest growing major economy, while key global economies are sailing in rough seas.

US dollar in the morning session on Thursday, tracking the strength of the American currency in the overseas market and muted trend in domestic equities. Forex traders said rupee is trading in a narrow range as the support from easing crude oil prices was negated by strong dollar demand from importers. At the interbank foreign exchange, the rupee opened at 83.36 against the dollar, registering a fall of 4 paise over its previous close.

RBI) Governor Shaktikanta Das will unveil the fifth monetary policy of the financial year 2023-24 on Friday, December 8, after a two-day review, as it observes the impact of global headwinds on India's macroeconomic indicators such as inflation trajectory and growth in gross domestic product (GDP). The review by the six-member Monetary Policy Committee (MPC) led by Das will likely indicate the course RBI will adopt in the remainder of the financial year as it seeks to strike a fine balance between sustaining growth and bringing inflation under the 4 per cent target amid high food prices.