Podcast
Questions and Answers
What significant change was made to the RBI's policy stance in the recent monetary policy announcement?
What significant change was made to the RBI's policy stance in the recent monetary policy announcement?
- Changed to 'Expansionary' from 'Neutral'
- Changed to 'Neutral' from 'Withdrawal of Accommodation' (correct)
- Changed to 'Accommodative' from 'Neutral'
- Changed to 'Contractionary' from 'Withdrawal of Accommodation'
What was the outcome of the MPC's vote regarding the benchmark repo rate?
What was the outcome of the MPC's vote regarding the benchmark repo rate?
- Eliminate the repo rate entirely
- Increase by 0.25%
- Maintain status quo at 6.5% (correct)
- Decrease to 6.0%
Which of the following quarterly GDP growth estimates was modified in the announcement?
Which of the following quarterly GDP growth estimates was modified in the announcement?
- Q3FY25 raised to 7.4%
- Q4FY25 cut to 7.2%
- Q2FY25 cut to 7% from 7.2% (correct)
- Q2FY25 raised to 7.2%
What is the unchanged CPI Inflation forecast for FY25?
What is the unchanged CPI Inflation forecast for FY25?
How many MPC members voted to maintain the status quo during the recent policy meeting?
How many MPC members voted to maintain the status quo during the recent policy meeting?
Which additional measure was announced to broaden the scope for responsible lending conduct?
Which additional measure was announced to broaden the scope for responsible lending conduct?
What rate related to the RBI's monetary policy remained unchanged at 6.75%?
What rate related to the RBI's monetary policy remained unchanged at 6.75%?
What quarterly inflation estimate was cut from 4.4% to 4.1%?
What quarterly inflation estimate was cut from 4.4% to 4.1%?
Flashcards
Retail Lending Segment
Retail Lending Segment
Covers loans and advances for personal consumption, meeting personal financial needs, and other purposes not related to business. Excludes loans for C&IC, MSME, or Rural & Agri segments.
Repo Rate
Repo Rate
The benchmark interest rate that banks charge each other for borrowing money.
Policy Stance (Neutral)
Policy Stance (Neutral)
The RBI's current approach to monetary policy, neither easing nor tightening.
FY25 GDP Growth
FY25 GDP Growth
Signup and view all the flashcards
CPI Inflation
CPI Inflation
Signup and view all the flashcards
FY25 CPI Inflation Forecast
FY25 CPI Inflation Forecast
Signup and view all the flashcards
MSEs
MSEs
Signup and view all the flashcards
Monetary Policy Committee (MPC)
Monetary Policy Committee (MPC)
Signup and view all the flashcards
Study Notes
Retail Lending Segment
- Loans and advances not covered by Commercial & Industrial (C&IC), Micro, Small & Medium Enterprises (MSME), or Rural & Agricultural segments, and used for personal purposes, are categorized under Retail Lending.
- This includes existing and new products, approved by relevant authorities.
Monetary Policy (October 9, 2024)
- The Reserve Bank of India (RBI) kept the benchmark repo rate unchanged at 6.5%.
- The MPC changed the policy stance to 'Neutral' from 'withdrawal of accommodation'.
- Forecast for FY25 GDP growth remained at 7.2%.
- CPI inflation forecast for FY25 was maintained at 4.5%.
Policy Measures
- Benchmark repo rate unchanged at 6.5%.
- Policy stance changed to 'Neutral' from 'Withdrawal of Accommodation'.
- Standing Deposit Facility (SDF) rate unchanged at 6.25%.
- Marginal Standing Facility (MSF) rate unchanged at 6.75%.
- Bank Rate unchanged at 6.75%.
GDP Growth Estimates
- For FY25, GDP growth estimates remained at 7.2%.
- Q2FY25: 7% (down from 7.2%)
- Q3FY25: 7.4% (up from 7.3%)
- Q4FY25: 7.4% (up from 7.2%)
- Q1FY26: 7.3% (up from 7.2%)
CPI Inflation Forecast
- CPI inflation forecast for FY25 remained at 4.5%.
- Q2FY25: 4.1% (down from 4.4%)
- Q3FY25: 4.8% (up from 4.7%)
- Q4FY25: 4.2% (down from 4.3%)
- Q1FY26: 4.3% (down from 4.4%)
Additional Measures
- Expanded responsible lending conduct norms to include Micro and Small Enterprises (MSEs).
- A discussion paper on funding options for primary (urban) cooperative banks.
- Created a Reserve Bank Climate Risk Information System.
- Increased UPI transaction and wallet limits.
- Introduced a beneficiary account name lookup facility for Real-time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
