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Below is the Perspective on RBI MPC announcement By Shri. Shanti Lal Jain, MD & CEO of Indian Bank

“By maintaining its accommodative stance and unchanged policy rates, RBI once again indicated that economic growth is its primary objective. RBI has brought in several measures to manage the liquidity in the system and keep reigning inflation under control while sustaining the economic growth.

Announcement of Standing Deposit Facility (SDF) with floor at 25 bps below Repo rate (presently 3.75%) for absorbing the liquidity and ensuring financial stability is a welcome move.

Extending applicability of Risk Weight guidelines of individual housing loans till Mar’23, enhanced limits under HTM category from 22% to 23% in SLR holdings would help the Banks in improving their credit flow to housing segment and for effective management of their liquidity, respectively.

The proposal to make available Cardless Cash withdrawal facility across all the Banks and ATM networks using UPI will give further fillip to the digital push.

In this policy, RBI has brought in several measures to achieve the twin objectives of economic growth and inflation control.”

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