RBI Monetary Policy: From Repo Rate to ATM machines for coins, check all key points here

Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday, February 8 announced the first Monetary Policy of the year 2023, after a two-day review meeting that began on Monday. Das said that the unprecedented events in the last three years had put Monetary Policy to the test, adding that there is a surge in global inflation which calls for changes in the Monetary Policy.

"The global economic outlook doesn't look as grim now as it did a few months ago, growth prospects in major economies have improved while inflation is on a descent though inflation still remains well above the target in major economies," the RBI governor said. 

Unprecedented events of the last three years have put to test monetary policy across the world. Emerging market economies are facing sharp tradeoffs between supporting economic activity and controlling inflation while preserving policy credibility: RBI Governor Shaktikanta Das pic.twitter.com/1oHOMJXF2W

— ANI (@ANI)

He also asserted that the Indian economy remains resilient amid volatile global developments. Das also highlighted that investment activity in the country continues to gain traction. Here are the key points of the Monetary Policy February 2023.

Keys points from the Monetary Policy Feb 2023

• RBI increased the Repo rate by 25 basis points to 6.5%.
• Shaktikanta Das said that inflation will likely stay above the 4% target this year and is expected to average 5.6% in the 4th quarter of 2023-24.
• The real GDP growth for 2023-24 is projected at 6.4% with Q1 at 7.8%, Q2 at 6.2%, Q3 at 6% & Q4 at 5.8%.
• Inflation is projected at 6.5% for the current financial year 2022-23.
• For the overall financial year 2023-24, inflation is projected at 5.3 % with Q1 at 5%, Q2 at 5.4%, Q3 at 5.4% and Q4 at 5.6%
• CPI inflation is projected at 5.3% for 2023-24, assuming a normal monsoon.
• RBI's MPC decided 4:2 vote to remain focused on the withdrawal of the accommodative policy.
• Govt bond market timings restored to 9 am to 5 pm.
• RBI to launch a pilot project in 12 cities wherein a QR code-based vending machine will dispense coins against debit to customers' accounts using UPI instead of physical tendering of bank notes. Based on the learnings from the pilot project, guidelines will be issued to banks to promote the distribution of coins using these machines.
• RBI proposed to permit all inbound travellers to use UPI payments for their merchant payments while they are in the country.