Bankers laud RBI's step to maintain status quo on rates as balanced policy

State-owned Indian Bank's chief S L Jain welcomed the policy announcement as a balanced call

RBI

Daruwala said augmentation of the functionality of Central Bank Digital Currency (CBDC) and permitting its offline use will encourage broader adoption

Press Trust of India Mumbai

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Bankers on Thursday welcomed the Reserve Bank of India's decision to maintain status quo on rates as a 'balanced' one which keeps in mind both the inflation challenge as well as the growth needs of the economy.
"The Monetary Policy Committee (MPC) decision to hold rates and stance was expected but the set of regulatory decisions holds out a pragmatic and steadfast approach in the quest for digital robustness, customer centricity and price discovery," SBI's chairman Dinesh Khara said.
State-owned Indian Bank's chief S L Jain welcomed the policy announcement as a balanced call.
"By keeping interest rates unchanged and sticking to its current policy stance, MPC aims to strike a balance between supporting economic growth and managing inflationary pressures. This approach is essential in navigating the complex and changing global economic landscape, ensuring that the economy remains resilient and adaptable to future challenges," Jain added.
Foreign lender Standard Chartered Bank's country head Zarin Daruwala said RBI has delivered a well-balanced decision that retained its steadfast focus on inflation, which is contrary to market expectations of RBI pivoting away from its tight monetary stance.
"While MPC held the repo rate in line with market expectations, what stood out was the upward revision in GDP to a robust 7 per cent for FY25," she added.
The bankers also welcomed the developmental policies announced with the monetary policy announcement, with Khara saying the need to furnish a 'Key Fact Statement' (KFS) for retail and MSME loans as one which will be aiding borrowers in informed decision-making.
"Enhancing the robustness of Aadhaar enabled Payment Systems (AePS), authentication of digital transactions through new mechanisms and operational changes in CBDC are all important milestones of systemic resilience and a better future," he said.
Daruwala said augmentation of the functionality of Central Bank Digital Currency (CBDC) and permitting its offline use will encourage broader adoption.
Among the non-bank lenders, Poonawalla Fincorp's Abhay Bhutada said the policy stance alleviates any additional financial burden on customers, fostering a conducive environment for sustained sectoral growth.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Feb 08 2024 | 10:28 PM IST

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