“Accommodative” stance to be maintained for revival: Governor of RBI

NEW DELHI: Reserve Bank of India governor Shaktikanta Das on Friday said that the monetary policy committee has decided to maintain the status quo by not changing the repo rate and reverse repo rate at 4% and 3.35% respectively.

The statement follows the three-day bi-monthly monetary policy meet of the MPC. It is a 6-member committee chaired by the governor of the central bank. It is the eighth consecutive time the MPC has decided to maintain the status quo by voting unanimously.  

The GDP growth target for the FY2022 is retained at 9.5%. While projecting 5.3% CPI inflation for the current year

Stating about inflation, Das said “July-September consumer price index (CPI) inflation is lower than anticipated. And the inflation trajectory is turning more favorable as economic activity is slowly picking up.”

RBI also proposed that the per transaction limit will be increased from Rs.2 lakhs to Rs.5 lakhs under all channels in Immediate Payment Services (IMPS), expect SMS and IVRS channels. This will encourage increased domestic-digital payments and reduce the credit and settlement risks.

Immediate Payment Service is a system governed by National Payments Corporation of India (NPCI) for instant domestic fund transfer available 24×7.

The Central Bank has also put forward the decision to come up with a framework for offline mode retail digital payments throughout the country.

The last statement made by Das was on an Internal Ombudsman scheme which has been decided to set in motion to address the grievances of large NBFC customers.

As the aggregate demand is gaining momentum, but at a slow pace and output remains below pre- pandemic levels, recovery remains uneven, and the economy needs continued policy support to revive hence the committee continues to keep the policy stance “accommodating” to revive and sustain growth on a durable basis.

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