 "RBI")
State Bank of India (SBI) chairman Dinesh Khara on Wednesday said the Reserve Bank of India is likely to maintain the status quo in the upcoming monetary policy.
"As a bank, we don't expect rate cut, status quo is likely to be maintained by the RBI," he said at CII Financial Inclusion & FinTech Summit.
On June CPI inflation, Khara said that the headline print can be perceived as an aberration.
In June, CPI inflation rose to a three-month high of 4.81 per cent due to spike in food prices.
"The Monetary Policy Committee (MPC) needs to see the trajectory of inflation," Khara said. The MPC is scheduled to next meet on Aug 8-10.
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In its June 8, policy review meeting, the Reserve Bank of India left its key interest rate unchanged for a second straight policy meeting but signalled that it wants to see inflation moderate more while keeping an eye on the monsoon.
Khara said that private capex is moving in the right direction and it will pick up when"capacity utilisation rises.”
He added that financial inclusion has emerged as a key foundation for socio-economic empowerment and a critical enabler for the inclusive and holistic growth of the people.
“The government has rightly recognised the potential of financial inclusion and spearheaded several notable initiatives and policies to include the unbanked in the financial ecosystem,” Khara said.
Khara also underscored the importance of innovation, creating financial awareness through public-private partnerships, integrating financial inclusion with social protection, addressing concerns around data security and privacy, and building partnerships to leverage the changing demographics in India and the rest of the world.
At the same event, Hitendra Dave, Chief Executive Officer-India, HSBC Bank said that people should be weaned away from unorganised financial intermediaries such as the middlemen and brought into the formal financial ecosystem which would be facilitated through digitisation.
