Dinesh Kumar Khara, Chairman, State Bank of India, said: “The RBI growth upgrade in the policy reaffirmed India’s continued robust growth post pandemic. Domestic growth inflation outlook has moved favourably with inflation moving below 4% in Q2. The regulatory measures like setting up of “Digital Payments Intelligence platform” will harness advanced technologies to mitigate fraud risks. The measures to augment digital payments architecture are pro customer measures. Rationalising the definition of bulk deposit from existing Rs 2 crores to Rs 3 crores will facilitate better asset liability match for all scheduled commercial banks by reducing sensitivity to interest rate fluctuations.”
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M V Rao, Chairman, Indian Banks’ Association (IBA) & Managing Director & CEO, Central Bank of India, said, the hike in real GDP growth projection for FY25 from 7 per cent to 7.2 per cent reposes confidence of the central bank regarding growth prospects of the domestic economy. This is quite positive for the markets. The focus still continues to be on inflation, though the risks are evenly balanced.
Zarin Daruwala, CEO, India and South Asia, Standard Chartered Bank, said, “The repo rate was left unchanged as expected but the upward revision in the full year GDP estimate to 7.2% was encouraging. RBI’s optimism on rural consumption boost, basis the forecast of an above-normal monsoon, augurs well for the agricultural sector and the overall rural economy. RBI’s ongoing focus on inflation may give it room for rate cuts in the coming months.”
Umesh Revankar, Executive Vice Chairman, Shriram Finance, said: “With headline inflation moderating, liquidity remaining stable and growth figures being impressive, many observers felt that maybe this time, the MPC may want to consider adopting a dovish stand. However, with the geo-political situation still remaining volatile and India’s food inflation staying elevated, the RBI has rightly prioritised caution by maintaining status quo on policy rates.
“The RBI’s revised projection of a Real GDP growth rate of 7.2% for FY25 compared to 7% earlier is a sign of confidence in the Indian economy’s resilience. The proposal to establish a Digital Payments Intelligence Platform promises to fortify the digital payments ecosystem. The ecosystem will be further boosted by the inclusion of various recurring payments under the e-mandate framework.”