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Below the Views on RBI Monetary Policy by Mr. George Alexander Muthoot, MD, Muthoot Finance 

“We commend the RBI’s prudent decision to maintain policy rates at 6.5% while adopting a neutral stance, providing essential flexibility to address inflationary pressures without hampering growth. This balanced approach allows the financial sector to respond effectively to evolving economic conditions. Despite global challenges, the Indian economy has demonstrated remarkable resilience, and it’s encouraging to see a revival in investment activities. Additionally, rural demand is on the rise, driven by favorable agricultural activities, which fuels our optimism for sustained growth. As we approach the festive and wedding season, we anticipate further uptick in both urban and rural demand, creating a positive environment for gold loans.

We are pleased to see the RBI Monetary Policy Committee’s confidence in the strong health parameters of the Indian financial ecosystem, including banks and NBFCs. As a responsible gold-loan NBFC, we recognize the importance of maintaining this stability and are committed to safeguarding customer interests. The RBI’s emphasis on customer protection and compliance aligns well with our commitment to responsible credit lending practices. Muthoot Finance remains dedicated to maintaining a robust risk management framework and enhancing operational resilience to navigate complexities. 

We also welcome the RBI’s continued efforts to strengthen the digital arm of the financial ecosystem, particularly through the enhancement of UPI transaction limit. This initiative further reinforces India’s position as a leader in digital payments, encouraging wider adoption of UPI, and fostering greater financial inclusion. In alignment to offer more convenience to our customers and target the digital-savvy audience, Muthoot Finance had recently partnered with Google Pay to revolutionize gold loans.”

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