The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) has decided to keep the policy rate unchanged at 6.5 per cent with a majority vote of 5 : 1.
Announcing the decision, Governor Shaktikanta Das said the MPC decided unanimously to change stance to neutral and remain unambiguously focussed on endurable alignment of inflation with growth.
Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.
On the GDP growth, the Governor said the real GDP growth is projected at 7.2 per cent for FY24-25.
For Q2 FY24-25, real GDP growth is projected at 7 per cent, Q3 at 7.4 per cent and Q4 at 7.4 per cent, the risks are evenly balanced, he said. Real GDP growth for Q1 FY25-26 is projected at 7.3 per cent.
He said the CPI Inflation for FY24-25 is projected at 4.5 per cent. For Q2, the inflation is projected at 4.1 per cent, Q3 at 4.8 per cent and Q4 at 4.2 per cent.
Further, the Consumer Price Index (CPI) inflation for Q1 FY25-26 is projected at 4.3 per cent, the risks are evenly balanced, he added.
“RBI is closely monitoring the incoming information and will take measures if necessary, banks and NBFCs need to closely assess their exposure in these areas, underwriting standards have to be robust, continued attention also needs to be given in cyber security, mule accounts, etc,” he said.
Banks and NBFCs are not permitted to levy foreclosure charges or prepayment penalties on any floating rate term loan sanctioned to individual borrowers for non business purposes.
It is now proposed to broaden the scope of these guidelines for loans to medium and small enterprises, and a draft will be issued for public consultation, the Governor said.
Saugata Bhattacharya, Professor Ram Singh, Dr Rajiv Ranjan, Dr Michael Debabrata Patra and Shaktikanta Das voted to keep the policy repo rate unchanged at 6.50 per cent while Dr Nagesh Kumar voted to reduce the policy repo rate by 25 basis points.
Further, Dr Nagesh Kumar, Saugata Bhattacharya, Professor Ram Singh, Dr Rajiv Ranjan, Dr Michael Debabrata Patra and Shaktikanta Das voted for a change in stance from withdrawal of accommodation to ‘neutral’ and to remain unambiguously focused on a durable alignment of inflation with the target, while supporting growth.