The Reserve Bank of India (RBI) has increased the cap on e-Rupee prepaid digital vouchers. The current ceiling of 10,000 will be raised to 1 lakh per voucher and can be used several times, governor Shaktikanta Das announced on Thursday.
Furthermore, in order to provide improved infrastructure for TReDs settlement, the governor advocated increasing the NACH mandate limit for trade-related settlements from Rs 1 crore to Rs 3 crore.
The Central Bank has also prolonged the on-tap liquidity window for healthcare till June 30th and increased the voluntary retention route cap by 1 lakh crore to 2.5 lakh crore.
The RBI governor forecasts 7.8% economic growth in India for the fiscal year 2023 (FY23). The current fiscal year’s growth rate remains at 9.2%.
According to the governor, there has been some loss of economic momentum as a result of the third pandemic wave, and demand for contact-intensive industries has been dampened.
Furthermore, for the tenth meeting in a row, the Central Bank has held the benchmark interest rate or repo rate – the rate at which banks borrow from the Central Bank – constant at 4% and chose to maintain an accommodating stance.
In the aftermath of the coronavirus pandemic, the RBI implemented an ultra-loose monetary policy, and in order to provide ample liquidity to the economy, it lowered the key rate to a record low of 4%, which it has maintained since May 2020.
The six-member Monetary Policy Committee headed by Reserve Bank of India Governor Shaktikanta Das started deliberations on the bi-monthly policy review on Tuesday and made the announcements on Thursday. The meeting of the top bank was originally scheduled to take place between February 7 and February 9 but was deferred by a day after the Maharashtra government declared February 7 a public holiday to mourn the death of legendary singer Lata Mangeshkar.