RBI's vigilance on lending and loan growth is in the right spirit to guide NBFCs to further enhance customer centricity: Rajiv Sabharwal
Brief: RBI’s vigilance on lending and loan growth is in the right spirit to guide NBFCs to further enhance customer centricity: Rajiv Sabharwal
Caption Rajiv Sabharwal, MD & CEO, Tata Capital
Keywords: RBI, GDP growth projection, Rajiv Sabharwal, current economic climate, Inflation
Seo The stated aim is to accelerate economic growth, and this showcases the RBI's balanced approach in response to the current economic climate
FinTech BizNews Service
Mumbai, December 8, 2023: Reserve Bank of India announced its monetary policy on Friday. Here is what some of the leading stakeholders have to say about measures taken by the regulator.
Rajiv Sabharwal, MD & CEO, Tata Capital: The RBI has maintained a status quo on rates, reaffirming its withdrawal policy stance. The stated aim is to accelerate economic growth, and this showcases the RBI's balanced approach in response to the current economic climate. The continued focus on aligning inflation with the 4% target showcases the importance of maintaining price stability for inclusive growth. The India story continues to reach new heights, with the GDP growth projection raised to 7% for FY’24, indicating the RBI's confidence in economic resilience and signaling optimism across all sectors. RBI’s vigilance on lending and loan growth is in the right spirit to guide NBFCs to further enhance customer centricity. The RBI has also made the players aware on the need for regulatory framework on web aggregation.
Picture Of Resilience And Momentum
Aamar Deo Singh, Head Advisory, Angel One: In the fifth monetary policy of the financial year 2023-24, the RBI has decided to keep the repo rates unchanged at 6.5 percent while maintaining a stance of ‘withdrawal of accommodation’. With regard to the Indian economy, the RBI holds the view that the Indian economy has presented a picture of resilience and momentum. India’s Real GDP growth for FY24 is projected at 7 percent from 6.5 percent while Real GDP for Q1FY25 is projected at 6.7%, for Q2FY25 at 6.5%, and for Q3FY25 at 6.4%. On the other hand, the inflation projection for FY2024 stands at 5.4 percent. With regards to global arena, RBI holds the view that the global economy remains fragile due to elevated debt levels, lingering geopolitical tensions and extreme weather conditions.
There Will Be No Changes In Floating-Rate
Himanshu Panchmatiya, Cofounder, Switch My Loan: With a focus on inflation, liquidity & currency management, the repo rate is expected to remain 6.50% for next 6-9 months. The market has realised that the current repo rate is the new normal. With no change in the repo rate, there will be no changes in floating-rate home loans and other advances which are linked to an external rate such as the repo rate. The affordable housing market has already taken some beating due to the prolonged higher repo rate. RBI may still consider deploying different tools in sucking out liquidity from market in case the inflation further shoots up.