Contrary to market expectations of RBI pivoting away from its tight monetary stance, it delivered a well-balanced decision that retained its steadfast focus on inflation
Zarin Daruwala
FinTech BizNews Service
Mumbai, February 8, 2024: Today, after the meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), a number of decisions were announced by the RBI Governor, Shaktikanta Das. The banks and NBFCs have appreciated the RBI’s decisions.
Dinesh Khara, Chairman, SBI: “The MPC decision to hold rates and stance was expected but the set of regulatory decisions holds out a pragmatic and steadfast approach in the quest for digital robustness, customer centricity and price discovery. The decision to have a key fact statement regarding retail and MSME advances will empower customers to make informed decisions. Enhancing the robustness of AePS, authentication of digital transactions through new mechanisms and operational changes in CBDC are all important milestones of systemic resilience and a better future”.
Zarin Daruwala, Cluster CEO, India and South Asia markets (Bangladesh, Nepal and Sri Lanka), Standard Chartered Bank: “While the MPC held the repo rate in line with market expectations, what stood out was the upward revision in GDP to a robust 7% for FY25. Contrary to market expectations of RBI pivoting away from its tight monetary stance, it delivered a well-balanced decision that retained its steadfast focus on inflation. Augmentation of the functionality of Central Bank Digital Currency (CBDC) and permitting offline use will encourage broader adoption. The new framework for digital payment authentication together with more stringent due diligence requirements for Aadhar Enabled Payment Systems will help curtail fraud risk.”
Abhay Bhutada, Managing Director, Poonawalla Fincorp: “The RBI's prudent decision to maintain the repo rate at 6.5% underscores a judicious approach towards India's economic trajectory, particularly benefiting NBFCs. This unwavering policy stance alleviates any additional financial burden on customers, fostering a conducive environment for sustained sectoral growth.”
