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Below View On RBI Policy By Mr. Shachindra Nath, Vice Chairman and Managing Director of U GRO Capital

Responding to the RBI Monetary Policy, Mr. Shachindra Nath, Vice Chairman and Managing Director has said, “The RBI Monetary policy is in line with the market expectation since the inflation has pulled down in recent past. The retail inflation has come down to 4.7% in April 2023 which is at an 18-month low. The wholesale inflation is also in negative and again at a multi-year low. It was expected that the rates would go down from here, however, as expected, the immediate reduction in rate was not in sight. RBI has remained cautious and not changed the rates. However, its decision to permit FLDG arrangements in digital lending and formal guidelines being published soon is a big positive for the data-tech NBFCs like us. The other encouraging signs are the 6.5% GDP predicted growth and the liquidity being brought into the banking system with withdrawal of 2000 rupee notes. As the Indian economy and banking system remains stable and resilient, we see a massive credit growth, especially for the MSME sector in India. Going forward, if the inflation remains soft in coming quarters, then we can expect a reduction of rate soon. It will, of course, depend upon how the inflation is in India, and how the global situation pans out.”

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