RBI Keeps Repo Rate Unchanged: Bankers Hail Move

Mumbai, Dec 8 (PTI) Bankers hailed the monetary policy announcement and said the slew of measures announced by the central bank are a clear affirmation that the economy is poised for a stable inflation and high growth regime with the possibility of growth breaching 7 per cent for the third successive year.

The central bank earlier in the day left key policy rates unchanged for the fifth time in a row and underlined that there is no room for complacency in the fight against inflation till prices fall to the 4 per cent target.

Welcoming the policy announcement, State Bank Chairman Dinesh Khara said the measures announced in the last monetary policy of the year are a clear affirmation that the economy is poised for a stable inflation and high growth regime with the possibility of growth breaching 7 per cent for the third successive year.

The chairman of the nation's largest lender also said the measures regarding liquidity will facilitate better fund management by banks.

Welcoming the enhancement of limits under UPI for education and healthcare, he said this will ensure that UPI emerges as a public good.

On the move towards a unified regulatory framework for connected lending and a regulatory framework for web-aggregation of loan products, he said these steps will ensure better pricing, transparency, and enhanced customer centricity.

A K Goel, the chairman of lenders' lobby Indian Banks' Association and the Managing Director of Punjab National Bank, said despite the looming global risks, the RBI has increased GDP projection from 6.5 to 7 per cent for FY24, which is indicative of its continued optimism in the resilience of the domestic economy.

Higher growth projections are quite positive for the banking sector as it indicates increase in the level of economic activities, thereby robust credit growth, Goel said.

On the proposed regulatory framework for web aggregators, he said it will help to enhance the transparency of their operations and help customers to take informed decisions.

To sum up, the policy is well balanced and signals the resilient growth story of the economy, which are both positive for the financial sector, he said.


Ashu Khullar of Citi India said the decision to keep the repo rate unchanged underscores that inflation management continues to be the top priority of the central bank, particularly in the broader context of global macroeconomic uncertainties, while the upward revision in growth forecast instils confidence in the India opportunity among domestic as well as global investors.

Zarin Daruwala of Standard Chartered Bank said the status quo policy reflects the RBI's confidence in growth and a continued focus on managing inflation risks.

Allowing reversal of liquidity adjustment facility on holidays and weekends will enable banks to better manage customer flows and this move also aligns well with the RBI's 24x7 payments framework.

Enhancement of UPI transaction limits and e-mandate limits will further encourage use of digital payment channels, she added.