RBI announcements: Reserve Bank of India (RBI) Governor Shaktikanta Das announced several important decisions today. The outcomes of the Monetary Policy Committee (MPC) meeting, which began on June 6, were disclosed today. The RBI has opted to maintain the repo rate at 6.5 per cent for the ninth consecutive time. Additionally, the RBI introduced several key measures that will have a direct impact on the public. Let's explore how these changes could affect everyday people.
Here’s a breakdown of how these changes might impact the general public:
- Increase in UPI transaction limit: The RBI announced that the UPI transaction limit for tax payments has been increased from Rs 1 lakh to Rs 5 lakh per transaction. The hike in the limit will help the taxpayers to pay higher tax liability quickly.
- Cheques to be cleared within few hours: RBI announced that cheques will now be cleared within a matter of a few hours. The Governor also announced measures to speed up cheque payment which will benefit both the payer and the payee. At present, cheque clearing through Cheque Truncation System (CTS), operates in a batch-processing mode and has a clearing cycle of up to two working days.
- No change in repo rate: RBI has not made any change in the repo rate. This simply means that customers taking loans from the bank will not get any relief in interest rates and they will have to pay EMIs at higher rates.
- Retail inflation expected to remain at 4.5%: The RBI projects that retail inflation will be around 4.5 per cent for the current financial year. Governor Das noted that while the overall inflation rate is decelerating, further moderation is anticipated. However, he emphasised the need for caution.
- Rising food prices: Rising food prices have raised concerns for both the public and the RBI. Shaktikanta Das said that despite a decrease in overall inflation, the MPC cannot overlook the impact of high food prices. He emphasised that food prices significantly affect common people across the country.
Also Read: RBI increases UPI transaction limit for tax payments to Rs 5 lakh
Also Read: Monetary Policy: RBI keeps repo rate unchanged for 9th time in a row at 6.5 pc
