RBI maintains status quo for 8th time in a row

The Reserve Bank of India on Friday, June 7, decided to keep the policy rate unchanged for the eighth time in a row, saying it will maintain a tight vigil on inflation. The rate increase cycle was paused in April last year after six consecutive rate hikes, aggregating to 250 basis points since May 2022.
Announcing the second bi-monthly monetary policy for the current financial year, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 per cent. He said MPC will remain watchful of elevated food inflation amid the expectation of a normal monsoon.
The RBI raised the growth projection to 7.2 per cent from an earlier estimate of 7 per cent for the current financial year.v The government has mandated the RBI to ensure CPI inflation at 4 per cent with a margin of 2 per cent on either side.
In a bid to bolster the safety and security of digital payments and enhance regulatory frameworks, the Reserve Bank of India (RBI) unveiled a series of proposals aimed at fostering innovation, inclusivity, and efficiency in the financial ecosystem.
These initiatives, announced by RBI Governor Shaktikanta Das, signify the central bank’s commitment to fortifying India’s digital infrastructure and promoting a conducive environment for financial transactions.
One of the key announcements made by Governor Das pertained to the establishment of a Digital Payments Intelligence Platform.
This platform, leveraging advanced technologies, aims to mitigate payment fraud risks and enhance the safety of digital transactions.
According to the annual report released by the Reserve Bank of India (RBI) on May 30, there was a significant surge in the number of financial frauds reported by banks, increasing by 166 per cent year-on-year in the financial year 2023-24 to reach 36,075 cases.
This figure starkly contrasts with the 13,564 cases reported in the previous fiscal year, FY23.

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