
Highlights of Monetary Policy Statement
Highlights of Monetary
Policy Statement – Resolution of the MPC, June 6 to 8, 2022
Based on the
assessment of the macroeconomic situation and the outlook, the MPC
voted unanimously to increase the policy repo rate by 50 basis points to 4.90
per cent, with immediate effect.
Consequently,
the standing deposit facility (SDF) rate stands adjusted to 4.65 per
cent; and the marginal standing facility (MSF) rate and the
Bank Rate to 5.15 per cent.
MPC also decided
unanimously to remain focused on withdrawal of accommodation to
ensure that inflation remains within the target going forward, while supporting
growth.
On the assumption of a
normal monsoon in 2022 and average crude oil price (Indian basket) of US$ 105
per barrel, CPI inflation is projected at 6.7 per cent in 2022-23,
with Q1 at 7.5 per cent; Q2 at 7.4 per cent; Q3 at 6.2 per cent; and Q4 at 5.8
per cent, with risks evenly balanced.
Real GDP growth projection
for 2022-23 is retained at 7.2 per cent, with Q1 at 16.2 per cent; Q2 at
6.2 per cent; Q3 at 4.1 per cent; and Q4 at 4.0 per cent, with risks broadly
balanced.
Housing loan limits
that can be extended by Cooperative Banks to their customers has been revised
upwards given the increase in housing prices since the last revision.
Limits for Tier I /Tier II (Urban) Co-operative Banks shall stand revised from
Rs. 30 lakh/ Rs. 70 lakhs to Rs. 60 lakh/ Rs. 140 lakhs, respectively. Limits
for Rural Cooperative Banks (RCBs) shall increase from Rs. 20 lakhs to Rs. 50 lakhs
for RCBs with assessed net worth less than Rs. 100 crores; and from Rs. 30 lakhs
to Rs. 75 lakhs for other RCBs.
Considering the
growing need for affordable housing and to realize their potential in providing
credit facilities to the housing sector, it has been decided to allow
State Co-operative Banks and District Central Co-operative Banks to extend
finance to Commercial Real Estate – Residential Housing within the
existing aggregate housing finance limit of 5 per cent of their total assets.
RBI has
introduced new measure to improve safety of settlement of
over-the-counter (OTC) derivatives that are not centrally cleared.
Under e-Mandates on
Cards for recurring payments like subscriptions, insurance premia, education
fee, etc. of larger value the limit is being enhanced from Rs. 5,000 to
Rs. 15,000 per transaction.
RBI has proposed to
allow linking of credit cards on the UPI platform, previously UPI
facilitates transactions by linking savings/current accounts through users’
debit cards.
RBI has proposed to
make modifications to the Payments Infrastructure Development Fund Scheme by,
inter-alia, enhancing the subsidy amount, simplifying the subsidy claim
process, etc. This is expected to further accelerate and augment the
deployment of payment acceptance infrastructure in the targeted geographies.