Top 16 things that you should know of the RBI monetary policy

Following are the highlights of the bi-monthly monetary policy unveiled by the Reserve Bank Governor, Shaktikanta Das, on Thursday:

⦁ The policy repo rate was retained at 6.5 percent.

⦁ Focus on withdrawal of accommodative policy stance to ensure that inflation progressively aligns with the target, while supporting growth.

⦁ Retains GDP growth projection for FY'24 at 6.5 percent.

⦁ Marginally revises upwards inflation forecast to 5.4 percent.

⦁ A spike in vegetable prices, led by tomatoes, may exert sizable upside pressures on the near-term inflation trajectory. Vegetable prices are likely to correct with fresh market arrivals.

⦁ RBI to ensure greater transparency in interest rate reset of EMI-based floating interest loans.

⦁ Borrowers get options of switching to fixed-rate loans or foreclosure of loans.

⦁ RBI proposes the use of Artificial Intelligence (AI) in UPI payments.

⦁ Near Field Communication (NFC) technology to be used in offline payments in UPI-Lite.

⦁ Proposes to enhance transaction limits for small-value digital payments to Rs 500 from Rs 200 in UPI Lite.

⦁ Announces measures to absorb surplus liquidity generated by various factors, including the return of Rs 2000 notes to the banking system.

⦁ The cash reserve ratio (CRR) remains unchanged at 4.5 percent.

⦁ Current account deficit to remain eminently manageable during the current financial year.

⦁ Foreign portfolio investment flows have remained buoyant in 2023-24 so far, with net FPI inflows at USD 20.1 billion up to Aug 8, the highest since 2014-15.

⦁ Net FDI fell to USD 5.5 billion during Apr-May 2023, compared to USD 10.6 billion in the year-ago period.

⦁ The next meeting of the RBI rate-setting panel is scheduled during October 4-6