Quote on RBI's MPC Announcement by Mr. Umesh Mohanan, ED & CEO at Indel Money
Below the Quote on RBI's MPC Announcement by Mr. Umesh Mohanan, ED & CEO at Indel Money
“The RBI’s decision to raise the repo rate by 25 bps to 5.5% and adopt a calibrated tightening stance reflects its focus on containing inflation while maintaining the momentum of economic growth. With domestic economic activity remaining resilient and the RBI raising its FY27 GDP growth projection to 7.1%, the rate hike appears measured and aimed at keeping inflation expectations anchored without materially disrupting credit demand. The banking and NBFC sectors continue to remain well-capitalised, with credit growth holding up well.
For gold-loan NBFCs, the underlying demand environment remains encouraging. The 69% year-on-year growth in NBFC gold loans in August highlights the continued importance of gold-backed credit as a source of quick and secured liquidity for households and small businesses. While higher interest rates may lead to some moderation in borrowing demand, the need for accessible secured credit remains strong. For lenders, the priority will be to maintain prudent underwriting, responsible growth and efficient service delivery while expanding access to formal credit.
The RBI’s move to enable greater interoperability among NBFC Account Aggregators is also a significant step for the sector. Improved access to consent-based financial information can help NBFCs strengthen credit assessment, streamline customer onboarding and enable faster, more informed lending decisions. This can ultimately improve both operational efficiency and the customer experience while supporting responsible growth across the NBFC ecosystem.”
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