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RBI Monetary Policy Committee Meeting June 2023

RBI Monetary Policy Committee (MPC) has announced its policy decision. The Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday announced that the Monetary Policy Committee (MPC) has unanimously decided to keep the policy repo rate unchanged at 6.50 per cent.

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RBI’s Monetary Policy 2023

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has announced its policy decision. The 2nd bi-monthly monetary policy meeting of FY24 was held from June 6 to 8 and its outcome will be announced on June 8. The next meeting of the MPC is scheduled during August 8-10, 2023.  All members of the MPC – Dr. Shashanka Bhide, Dr. Ashima Goyal, Prof. Jayanth R. Varma, Dr. Rajiv Ranjan, Dr. Michael Debabrata Patra, and Shri Shaktikanta Das – unanimously voted to keep the policy repo rate unchanged at 6.50 percent.

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RBI Monetary Policy 2023

Important Points
  • According to Reserve Bank of India (RBI) Governor Shaktikanta Das, there has been a significant shift in net Foreign Portfolio Investment (FPI) inflows during the current financial year. As of June 6, the net FPI inflows amount to USD 8.4 billion. This is in contrast to the net outflows recorded in the previous two years, which amounted to USD 14.1 billion in 2021-22 and USD 5.9 billion in 2022-23. This information highlights the positive trend of increased FPI inflows in the current financial year.
  • RBI projects consumer price index inflation for FY24 at 5.1%.
  • Real GDP growth projections for the financial year 2023-24 is projected at 6.5 percent with Q1 projections being 8 percent, Q2 projections being 6.5 percent, Q3 projections being 6 percent and Q4 projections being 5.7 percent.
  • Monetary Policy Committee decides to keep repo rate unchanged at 6.5%, Standing Deposit Facility Rate remains at 6.25%.
  • Marginal Standing Facility Rate and Bank Rate unchanged at 6.75%.
  • The Reserve Bank of India has granted Scheduled Commercial Banks (excluding Small Finance Banks) the authority to determine their own borrowing limits in the Call and Notice Money Markets. However, these limits must still comply with the prudential limits for inter-bank liabilities set by the Reserve Bank of India. This decision offers greater flexibility to banks in managing their money market borrowings while ensuring they adhere to the regulatory framework provided by the central bank.
  • RBI has proposed to expand the scope and reach of e-RUPI vouchers by permitting non-bank Prepaid Payment Instrument (PPI) issuers to issue e-RUPI vouchers and enabling issuance of e-RUPI vouchers on behalf of individuals.
  • With an aim of broadening the issuance of e-rupee vouchers, the Reserve Bank of India Governor Shaktikanta Das on Thursday (June 8) announced that now non-bank companies can also issue e-rupee vouchers.
  • The Sensx was trading 149.21 points, or 0.24%, higher at 63,292.17, while the Nifty gained 42.60 points, or 0.23%, to 18,769.00.

Read Also: RBI approves transfer of Rs. 87,416 crore as dividend to govt for FY23

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