Mumbai, April 6, 2023Delivering the bimonthly Monetary Policy Statement of the RBI through the RBI’s YouTube channel today, the RBI Governor Shaktikanta Das has informed that the Monetary Policy Committee has decided unanimously to keep the policy repo rate unchanged at 6.50 per cent with readiness to act, should the situation so warrant. Consequently, the standing deposit facility (SDF) rate will remain unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.The Governor observed that inflation is above the target and given its current level, the present policy rate can still be regarded as accommodative. Hence, the MPC decided to remain focused on withdrawal of accommodation.Noting that economic activity remains resilient amidst global volatility, the Governor informed that India’s real GDP growth for 2023-24 is projected at 6.5 per cent, with Q1 at 7.8 per cent; Q2 at 6.2 per cent; Q3 at 6.1 per cent; and Q4 at 5.9 per cent.The Governor informed that CPI inflation is projected to moderate to 5.2 per cent for 2023-24; with Q1 at 5.1 per cent; Q2 at 5.4 per cent; Q3 at 5.4 per cent; and Q4 at 5.2 per cent.The RBI Governor announced five additional measures, as given below. Developing an Onshore Non-deliverable Derivative MarketThe Governor explained that banks in India with IFSC Banking Units (IBUs) were earlier permitted to transact in Indian Rupee (INR) non-deliverable foreign exchange derivative contracts (NDDCs) with non-residents and with other eligible banks having IBUs.Now, banks with IBUs will be permitted to offer NDDCs involving INR to resident users in the onshore market. The Governor informed that this measure will further deepen the forex market in India and provide enhanced flexibility to residents in meeting their hedging requirements. Enhancing Efficiency of Regulatory ProcessesThe RBI Governor informed that a secured web based centralised portal named as ‘PRAVAAH’ (Platform for Regulatory Application, Validation And AutHorisation) will be developed, to enable entities to apply for license / authorisation or regulatory approvals from the Reserve Bank. In line with the Union Budget 2023-24 announcement, this will simplify and streamline the current system, wherein these applications are made through both offline and online modes.The Governor informed that the portal will show time limits for deciding on the applications/approvals sought. This measure will bring greater efficiencies into regulatory processes and facilitate ease of doing business for the regulated entities of the Reserve Bank. Development of Centralised Web Portal for the Public to Search Unclaimed DepositsThe Governor noted that at present, the depositors or beneficiaries of unclaimed bank deposits of 10 years or more have to go through the websites of multiple banks to locate such deposits.Now, in order to improve and widen the access of depositors / beneficiaries to information on such unclaimed deposits, it has been decided to develop a web portal to enable search across multiple banks for possible unclaimed deposits. This will help depositors/beneficiaries in getting back unclaimed deposits, said the Governor. Grievance Redress Mechanism relating to Credit Information Reporting by Credit Institutions and Credit information provided by Credit Information CompaniesRecalling that the Credit Information Companies (CICs) were recently brought under thepurview of the Reserve Bank Integrated Ombudsman Scheme (RB-IOS), the Governor announced that the following measures are going to be put in place:a compensation mechanism for delayed updation /rectification of credit information reportsa provision for SMS/email alerts to customers whenever their credit information reports are accessedtimeframe for inclusion of data received by CICs from Credit Institutionsdisclosures on customer complaints received by CICs These measures will further enhance consumer protection, said the Governor.Operation of Pre-Sanctioned Credit Lines at Banks through the UPIThe Governor noted that the Unified Payments Interface (UPI) has transformed retail payments in India and recalled how UPI’s robustness has been leveraged to develop new products and features from time to time. The Governor announced that it has now been decided to expand the scope of UPI by permitting operation of pre-sanctioned credit lines at banks through the UPI. This initiative will further encourage innovation, he added.
