RBI Monetary Committee Meeting: The Reserve Bank of India on Friday took some major decisions in the Monetary Policy Committee meeting. The Central Bank kept the repo rate unchanged and upgraded India's GDP growth forecast for the current fiscal year to 7 percent. The development gave solid reasons to boom the stock market as Nifty touched 21000 Mark for the first time in early trade. Below are the major announcements made by RBI Governor ShaktiKanta Das.
Revised GDP growth for Fiscal year
The RBI raised its GDP growth forecast to 7 percent following the July-September growth rate data. Earlier, RBI predicted a 6.5 percent growth rate for the current financial year.
As per market experts, the revision in the GDP growth forecast is led by strong domestic demand and better capacity utilization in the manufacturing sector. the growth estimates for the first three quarters of the coming financial year are 6.7 percent, 6.5 percent, and 6.4 percent respectively.
RBI's forecast is much higher than the expectations of global agencies. The IMF, World Bank, and ADB have projected India's GDP growth at 6.3 percent in FY24.
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Repo rate Unchanged
The Monetary Policy Committee (MPC) of The Reserve Bank of India on Friday announced that they have decided to keep the repo rate unchanged for the fifth consecutive time at 6.50 percent.
Hikes UPI Payment Limits For hospitals and Educational institutions
In a major development, the Reserve Bank governor Shaktikanta Das announced that RBI raised the UPI payment limit for hospitals and educational institutions from Rs. 1 lakh to Rs. 5 lakhs. The Central Bank also decided to hike e-mandates for recurring payments to Rs 1 lakh.