MONETARY POLICY STATEMENT, 2024-25 JUNE  2024

On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting on June 7, 2024 decided to:

  • Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent.
  • Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.

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

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.

Statement on Development and Regulatory Policies

1. Review of Bulk Limits: Rs. 3.00 Cr for SCBs excluding RRBs.  For RRBs and LABs – Rs.1 Cr

2. Setting up a Digital Payments Intelligence Platform: The Reserve Bank, over the years, has undertaken a number of measures for the safety and security of digital payments to maintain public confidence in digital payment systems and to minimize the incidence of frauds.  Many frauds occur by influencing unsuspecting victims to make the payment or share credentials.

To further strengthen the ecosystem so as to minimize the frauds, RBI has set up a Digital Payments Intelligence Platform which will harness advanced technologies to mitigate payment fraud risks. To take this initiative forward, the Reserve Bank has constituted a committee (Chairman: Shri A.P. Hota, former MD & CEO, NPCI) to examine various aspects of setting up a digital public infrastructure for Digital Payments Intelligence Platform. The Committee is expected to give its recommendations within two months.

3. Inclusion of Recurring payments under e mandate framework:  The payments, such as replenishment of balances in Fastag, NCMC, etc. which are recurring in nature but without any fixed periodicity, as such they are being brought into the e-mandate framework.  Under the e-mandate framework, it is proposed to introduce an automatic replenishment facility for such payments. The automatic replenishment will be triggered when the balance in Fastag or NCMC falls below a threshold amount set by the customer. 4.  Introducing auto-replenishment of UPI Lite wallet – The UPI Lite facility currently allows a customer to load his UPI Lite wallet upto ₹2000/- and make payments upto ₹500/- from the wallet. In order to enable the customers to use the UPI Lite seamlessly, and based on the feedback received from various stakeholders, it is proposed to bring UPI Lite within the ambit of the e-mandate framework by introducing an auto-replenishment facility for loading the UPI Lite wallet by the customer, if the balance goes below a threshold amount set by him/her.