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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Government statement on Monetary Policy 2023-2024

08-Dec-2023 | Press Release: 2023-2024/1437

RBI has issued a Press release on Government statement on Monetary Policy 2023-2024 in line with the Monetary Policy committee meet from 6th December to 8th December, 2023.

Key highlights of the statement are:-

1.Monetary Policy Committee (MPC) decided unanimously to keep the policy repo rate unchanged at 6.50 per cent and the standing deposit facility (SDF) rate
remains at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.

2.The MPC decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.

3. An Assessment has been made on Growth and Inflation according to which global economy continues to remain fragile. In terms of Domestic growth GDP posted a robust growth of 7.6 per cent in Q2:2023-24, driven by investment and government consumption.

4. Furthermore, statements on Inflation, Liquidity and Financial Market Conditions, Financial Stability, External Sector, Review of the Regulatory Framework for Hedging of Foreign Exchange, Framework for Connected Lending, Regulatory Framework for Web-Aggregation of Loan Products, Setting up of Fintech Repository has also been made.

5. Proposal for The UPI transaction limit for payment to hospitals and educational institutions from ?1 lakh to ?5 lakh per transaction has been made.
6. Proposal to enhance this limit to ?1 lakh per transaction for recurring payments of mutual fund subscriptions, insurance premium subscriptions and credit card repayments.

7. Establishment of Cloud Facility for the Financial Sector in India is under process to facilitate better scalability and business continuity.

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