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RBI policy on expected lines, upgrading GDP growth estimate reposes confidence: Bankers

Indian Banks' Association chairman M V Rao, said the policy moves, including the status quo on repo rate and also the stance were on expected lines.
Last Updated : 07 June 2024, 15:35 IST
Last Updated : 07 June 2024, 15:35 IST

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Mumbai: The Reserve Bank's decision to hold interest rate was along expected lines, bankers said on Friday, welcoming the RBI's upward revision of the growth estimate.

Indian Banks' Association chairman M V Rao, who also heads state-run Central Bank of India, said the policy moves, including the status quo on repo rate and also the stance were on expected lines.

Moreover, the upward revision in FY25 GDP growth estimate to 7.2 per cent reposes confidence of the central bank in the growth prospects of the economy, he said.

SBI Chairman Dinesh Khara said the growth estimate revision reaffirmed India's continued robust growth post pandemic.

"Domestic growth inflation outlook has moved favourably with inflation moving below 4 per cent in Q2," he said, welcoming the regulatory measures.

The proposed digital payments intelligence platform will harness advanced technologies to mitigate fraud risks, he said, adding that the measures to augment digital payments architecture are pro-customer measures.

Indian Bank's managing director and chief executive S L Jain said policy review shows RBI's careful approach to balancing economic growth while keeping inflation under control.

Among foreign lenders, Standard Chartered's Zarin Daruwala said the central bank's focus on inflation may create room for rate cuts in the coming months.

"RBI's optimism on rural consumption boost basis the forecast of an above-normal monsoon, augurs well for the agricultural sector and the overall rural economy," she added.

Tata Capital's Managing Director and chief executive Rajiv Sabharwal said RBI's collaborative stance and the current market conditions work well for the economy, encouraging lower interest rates and increased investments.

"Collaboration of regulators and market players is important for the growth and evolution of the financial sector," he said.

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Published 07 June 2024, 15:35 IST

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