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Below the Quote on RBI Monetary Policy Meeting by Mr. Rajesh Sharma, Managing Director at Capri Global Capital Limited

As widely expected, the Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5% for the seventh consecutive time. This strategy highlights the RBI's priority to balance growth with inflation control, acknowledging the significant weight of volatile food components in India's retail inflation basket and the potential impact of global oil price fluctuations. While there was some anticipation of rate cuts by the end of 2024, the RBI seems inclined to adopt a wait-and-see approach before initiating a rate cut cycle. Moreover, the introduction of UPI-based Cash Deposits and the issuance of Central Bank Digital Currency (CBDC) for Non-Bank entities represent significant advancements. UPI-based Cash Deposits streamline the cash deposit process, enhancing transaction convenience and efficiency. The CBDC for Non-Bank entities extends access to digital currency beyond traditional banks, fostering financial inclusion and innovation. These initiatives underscore the RBI's proactive approach to enhance the financial ecosystem and support economic growth, reflecting a positive direction for the industry.

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