Big things from RBI MPC meeting: EMI of Home Loan, Car Loan has not increased, you will be able to make payment of Rs 5 lakh through UPI in schools and hospitals.

Before the Lok Sabha elections, the government and the central bank are trying their best to ensure that inflation does not increase. While the Reserve Bank of India has decided not to let your EMI increase by keeping the repo rate at 6.5 percent, it has also predicted the country’s economic growth rate to get better. Along with this, while giving information about the financial health of the country, RBI has said that India is in a better position to face uncertainties compared to many other countries. RBI has also given a new facility to those making payments through UPI, which is being welcomed.

Loan interest did not increase

As far as the repo rate is concerned, let us tell you that the Reserve Bank of India has kept the policy repo rate at 6.5 percent for the fifth consecutive time. Maintaining the repo rate at 6.5 percent means that there will be no change in the monthly installment (EMI) on various loans including home, vehicle. Giving information about the decision taken in the three-day meeting of the Monetary Policy Committee (MPC) that started on Wednesday, RBI Governor Shaktikanta Das said, “After considering the circumstances, all the six members of the MPC unanimously decided to reduce the repo rate. Decided to maintain it at 6.5 per cent.” With this, the MPC has decided to stick to its stand of withdrawing the liberal stance. Shaktikanta Das said, “Despite global challenges, the country’s economy remains strong and our foundation is strong.” Das said, “Important figures like GST collections, PMI (Processing Managers Index) remain strong. Considering all this, the GDP growth rate in the current financial year is estimated to be seven percent.” Apart from this, the retail inflation rate has been estimated to be 5.4 percent in the current financial year.

Payment through UPI up to Rs 5 lakh in hospitals and schools

Apart from this, the Reserve Bank of India (RBI), giving relief to the people, has increased the limit of payment through the popular payment platform UPI (Unified Payment Interface) for treatment in hospitals and admission in educational institutions from Rs 1 lakh to Rs 5 lakh. Done. The aim of this initiative is to increase the use of UPI for payments in the fields of medicine and education. Presenting the bi-monthly monetary policy review, RBI Governor Shaktikanta Das said, “It has been decided to increase the limit of payment through UPI for hospitals and educational institutions from the existing Rs 1 lakh to Rs 5 lakh.” According to the bank, separate instructions will be issued in this regard soon. It is noteworthy that except for some categories, the limit for payment through UPI is fixed at Rs 1 lakh. Categories already exempted include capital markets (asset management companies, broking, mutual funds etc), credit card payments, loan repayments, EMIs, insurance etc. In these cases the limit for payment through UPI is Rs 2 lakh.

Additionally, the central bank had earlier increased the payment limit under UPI to Rs 5 lakh for applications for Retail Direct Scheme (RDS) and IPO (Initial Public Offering). Under the Retail Direct Scheme of RBI, individual investors are allowed to invest in government securities without intermediaries.

Estimates of economic growth rate increased

Apart from this, the Reserve Bank of India has increased the country’s economic growth rate estimate to seven percent for the current financial year 2023-24. The central bank has raised its growth forecast amid strong domestic demand and increased capacity utilization in the manufacturing sector. Earlier, the central bank had estimated the growth rate of gross domestic product (GDP) to be 6.5 percent in 2023-24. While giving the results of the bi-monthly monetary review meeting, Reserve Bank Governor Shaktikanta Das said that geopolitical tensions at the global level, however, are a risk to the growth rate outlook. RBI estimates that the economic growth rate in the current financial year will be seven percent. It is estimated to be 6.5 percent in the December quarter and six percent in the March quarter.

The central bank said that the economic growth rate in the first, second and third quarters of the next financial year is estimated to be 6.7 percent, 6.5 percent and 6.4 percent respectively. Let us tell you that the Indian economy grew at the rate of 7.2 percent in the financial year ending March 2023. The country’s real GDP growth in the June and September quarters of the current financial year was 7.8 percent and 7.6 percent respectively on an annual basis. The growth rate in the March quarter was 6.1 percent. If seen, the estimate of the Central Bank is much higher than the estimate of international financial institutions. International Monetary Fund, World Bank and rating agency Fitch have predicted India’s economic growth rate to be 6.3 percent in the current financial year. Whereas S&P has expected the growth rate to be 6.4 percent. RBI said that increase in public expenditure, above average capacity utilization in the manufacturing sector and domestic demand will give impetus to GDP growth.

If we look at the main points of the monetary review meeting of RBI, they are as follows-

-RBI kept the repo rate at 6.5 percent for the fifth consecutive time.

-Proposal to increase UPI transaction limit from Rs 1 lakh to Rs 5 lakh for payments to hospitals and educational institutions.

-The GDP growth estimate for the current financial year was increased from 6.5 percent to seven percent.

-Gross domestic product growth rate in December and March quarters is estimated at 6.5 percent, six percent.

-The average retail inflation projection for 2023-24 was retained at 5.4 per cent.

-Inflation expectations strongly influenced by uncertain food prices.

-Intermittent shocks in vegetable prices may once again push up overall inflation in November and December.

-The rupee will have less volatility compared to other emerging market currencies in 2023.

-On December 1, foreign exchange reserves were $604 billion.

-The central bank is alert and ready to take steps as per the circumstances.

-India is in a better position to face uncertainties than many other countries.

-Proposal to increase the limit for automatic deduction of money in certain categories from Rs 15,000 to Rs 1 lakh for recurring recurring payments.

-RBI will set up cloud facility for data security, privacy for the financial sector.

-The next Monetary Policy Committee meeting will be held on February 6-8, 2024.