RBI MPC 2024: In the recent announcement, the Monetary Policy Committee has kept the repo rate unchanged at 6.5%. GDP growth rate is estimated at 7.2% and CPI inflation at 4.5%. Know important banking terms like repo rate, reverse repo rate, cash reserve ratio, inflation, CPI, GDP and liquidity here.
RBI MPC Guideline 2024: The Reserve Bank of India (RBI) has announced the bi-monthly release. Based on an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) on August 8 decided to keep the policy rate under the Liquidity Adjustment Facility (LAF) unchanged at 6.50%. As a result, the bank rate of 6.75%, the marginal standing facility (MSF) rate and the standing deposit facility (SDF) rate all remain unchanged at 6.25%.
According to press release GDP growth for 2024-25 is forecast at 7.2%
Quarterly GDP projection as per RBI Monetary Policy Committee meeting on August 8, 2024
1st quarter: 7.1%
2nd quarter: 7.2%
3rd quarter: 7.3%
Q4 – 7.2%.
Q1 2025-26: 7.2%.
Consumer Price Index (CPI) inflation for 2024-25 is forecast at 4.5%,
Quarterly forecast of the Consumer Price Index (CPI)
2nd quarter: 4.4%
3rd quarter: 4.7%
Q4 – 4.3%.
Q1 2025-26: 4.4%.
Also check
Further measures announced
- Creration – Public repository for digital credit apps
- RBI increases the frequency of reporting credit information to credit bureaus (currently monthly)
- Increase in transaction limit for tax payments through UPI (from Rs 1 lakh to Rs 5 lakh)
- Introduction of Delegated Payments via UPI
- Continuous check cashing (currently it takes 2 days to cash a check, the goal is to cash it within a few hours)
Some important banking terms for bank audits:
Below we have explained some of the banking related terms that are asked in the banking job exam
Bankrate – This is the interest rate at which the RBI lent to banks.
Repo rate – When commercial banks need short-term liquidity, they can hold their securities with the central bank and receive the funds. However, they are obliged to buy back these securities at a later date and the resulting interest rate charged by the central bank is called the repo rate.
Reverse repo rate – This is the interest rate at which the Reserve Bank receives money from commercial banks
Cash reserve ratio – It refers to the minimum funds that banks must deposit with the RBI.
inflation: It is a general increase in the prices of goods and services in an economy. It is measured by the Consumer Price Index (CPI).
Consumer Price Index (CPI): The full form of CPI is Consumer Price Index. It is the price index used to measure inflation. The formula for calculating CPI is given below
CPI = (cost of a fixed basket of goods and services in the current year/cost of a fixed basket of goods and services in the base year) * 100
GDP: The abbreviation GDP stands for gross domestic product. It measures the monetary value of final goods and services purchased by the final consumer and produced in a country over a certain period of time.
Liquidity: It indicates how easily assets can be converted into cash. It is a measure of the ability to buy or sell assets quickly without significant price fluctuations and minimal loss of value.
