RBI’s 7 Key MPC Decisions

UPI Rules Changed and Loans Get Costlier!

#1 Gold Hedging Rules Tweaked

Indian residents are now allowed to hedge their gold price risk in IFSC. Currently, resident entities in India are not permitted to hedge their exposure to gold price risk in overseas markets.

#2 Home Loans to Get Costlier

RBI has hiked the repo rate by 35 bps to 6.25% in a bid to control inflation. This could increase home loan interest rates.

#3 Enhanced UPI Mandates

Single-block-and-multiple-debits functionality will be introduced in the UPI. It will allow a customer to block funds in his/her account for specific purposes, which can be debited whenever needed.

#4 Widening the Scope of BBPS

The RBI governor said the scope of the Bharat Bill Payment System is being enhanced to include all categories of payments and collections, both recurring and non-recurring, and for all categories of billers.

#5 India to Remain Fastest Growing Economy

Despite the revision in GDP growth at 6.8% that reflected a downward trend, India to remain the fastest-growing economy in the world. However, the GDP growth projection is 0.2% lower than earlier, which was estimated at 7%.

#6 The Battle Against Inflation Is Not Over

The RBI Governor said, "The battle against it is not over." CPI (Consumer Price Index) inflation forecast for April-June 2023 retained at 5%. CPI inflation is seen at 5.4% in July-September 2023.

#7 Rupee Remains Least Affected by US Dollar’s Appreciation

According to the RBI Governor, the Indian rupee's movement has remained least affected by the US dollar's appreciation compared to peers.

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