RBI’s 2023 in Review: From stable repo rates to tighter loan norms, 5 key policy changes by Shaktikanta Das & Co
Also Read: Stock market in 2023: Here are 10 key milestones achieved by Indian stock market this year The central bank also announced a slew of important developmental and regulatory policies this year for the financial sector in the country. Here are top 5 policy announcements by the RBI this year: The RBI began 2023 with an increase in repo rate during its February monetary policy, the first for this calendar year 2023. It hiked the lending rates by 25 bps to 6.50% to counter the surging inflation.
This move marked a continuation of the central bank's efforts to curb inflationary trends, with a cumulative increase of 250 basis points in the short-term lending rate since May 2022. Following the February policy, the RBI maintained a status quo on repo rates in each subsequent monetary policy review. As of the April policy, the repo rate has remained unchanged.
(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) In November, the RBI tightened norms for personal loans and credit cards in the form of higher capital requirements. The central bank raised the risk weights for lenders and non-bank financial companies (NBFCs) by 25 percentage points to 125% on retail loans. On credit card exposures, the RBI hiked the risk weights by 25 percentage points to 150% and 125% for banks and NBFCs, respectively.
The RBI also asked the banks to set aside additional capital against loans to NBFCs, where the risk weight is currently below 100%. The RBI in December clamped down on lenders’ evergreening loans through the use of alternative investment funds (AIFs). The RBI barred banks and NBFCs from investing in any scheme of AIFs having
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