The RBI's Monetary Policy Committee (MPC) has kept the repo rate steady at 6.5% for the sixth consecutive time.
The interim Budget 2024 marked the backdrop for the inaugural MPC meeting. During this session, Das indicated that, considering prevailing economic conditions, the MPC forecasts a GDP growth rate of 7 percent in FY25.
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) decided to maintain the repo rate at 6.50 percent during the most recent policy meeting for fiscal year 2023-24, marking the sixth consecutive instance of such maintenance. The meeting occurred between February 6 and 8.
RBI Governor Shaktikanta Das also announced that the MPC opted to continue with the "withdrawal of accommodation" monetary stance.
This meeting constituted the initial MPC gathering subsequent to the interim Budget 2024. Das indicated that, considering prevailing economic conditions, the MPC anticipates a GDP growth rate of 7 percent in FY25.
The repo rate remains steady at 6.50 percent. The RBI's most recent adjustment to the repo rate occurred in February 2023, raising it from 6.25 percent to 6.50 percent, reflecting an increment of 25 basis points (bps).
Key Fact Statement (KFS) for retail and MSME loans & advances
Das articulated that lenders are required to furnish their clients with a Key Fact Statement (KFS), encapsulating all pertinent information regarding a loan arrangement, including the total cost of the loan, in a comprehensible and straightforward manner. Presently, KFS is specifically mandated for loans extended by scheduled commercial banks to individual borrowers, digital lending by REs, and microfinance loans.