RBI Monetary Policy 2024 Highlights: Reserve Bank of India (RBI) Governor Shaktikanta Das unveiled the first monetary policy of the 2024-25 financial year. Following a two-day review by the Monetary Policy Committee (MPC), starting on April 3 and concluding on April 5, the RBI opted to retain the key policy repo rate at 6.5%, marking the seventh consecutive hold. Chaired by Governor Das, the six-member MPC also affirmed the policy stance as ‘withdrawal of accommodation’. Notably, the RBI has forecasted India’s real GDP growth rate for FY25 at 7%, while projecting CPI inflation for the same period to stand at 4.5%.
RBI Governor Shaktikanta Das has unveiled the inaugural monetary policy for FY25, outlining crucial highlights of the April policy.
Policy actions:
- The repo rate remains steady at 6.5%.
- The policy stance of ‘withdrawal of accommodation’ has been retained.
- The GDP growth forecast for FY25 stands at 7%, with quarterly projections as follows: Q1 at 7.1%, Q2 at 6.9%, Q3 at 7%, and Q4 at 7%.
- CPI inflation forecast for FY25 is set at 4.5%, with detailed quarterly projections: Q1 at 4.9%, Q2 at 3.8%, Q3 at 4.6%, and Q4 at 4.5%
Non- Policy actions
- An announcement is forthcoming regarding the scheme for trading sovereign green bonds at IFSC.
- A mobile app will be introduced to facilitate access to RBI’s Retail Direct Scheme for participating in the GSec market.
- A draft circular for the LCR framework for banks will be issued soon.
- All small finance banks will be allowed to engage in rupee interest rate derivative products trading.
- Enabling UPI for Cash Deposit Facility.
- Third-party applications will have access to UPI for Prepaid Payment Instruments (PPIs).
- Distribution of Central Bank Digital Currencies (CBDCs) will be conducted through Non-bank Payment System Operators.
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