How will RBI's decision affect you?

Amid rising inflation and economic slowdown, RBI has once again increased the repo rate. But this time the claim is not like the previous four policies because the inflation rate has come down in the country in the last month. The three-day meeting of the Monetary Policy Committee of the RBI, which began on Monday, has given everyone a jolt.

This time RBI has increased the interest rates by 35 basis points despite the softening of the inflation rate. Before this, RBI increased interest rates by 50 basis points three times in a row. This process of increasing interest rates started in May this year. After which, RBI increased the repo rate by 1.90% till September.

After this, from home loans and auto loans, all kinds of work became time-consuming. SMS is getting available from banks to pay people every month. The monthly budget of people has also been affected as the EMI of a loan of ₹20 lakh has increased by ₹ 2,000 in the last six months. At the same time, the burden of EMI on loans of higher amounts has increased considerably.

Experts also believe that despite the reduction in the inflation rate, the process of increasing the RBI interest rates is not going to stop. In such a situation, those who were expecting a reduction in the interest rates due to the reduction in the inflation rate may be disappointed again after the announcement of this policy.

With the increase in the repo rate also, the EMI is set to increase once again. ICICI bank sent an SMS to the people at the end of last week to increase the interest rates by 0.5%. In fact, from January till now the inflation has remained above the level of 6%. At the same time, the maximum limit of the inflation rate for RBI is 6%.

If the inflation rate remains more than 6% for three quarters, the RBI has to tell the reason for this to the government. In such a situation, without taking any risk, the RBI will continue to increase the repo rate until it is confident that the inflation rate will not increase now.

RBI gave the good news to add a great feature of UPI:

Today everyone gives their first preference to UPI when it comes to payment options. If you are also a Unified Payment Interface i.e. UPI user, then this news will make you happy. UPI is going to become more effective soon. The Reserve Bank presented its December monetary policy review on Wednesday.

Along with this, it has announced to add features; Now UPI will have a multiple debit function along with a single lock. Let's know about it in detail. Right now, through UPI's single block and single debit feature, you buy and sell stocks, OTT subscription e-commerce platform, book hotels online, then get the facility of auto payment for these services, which means that the payment is completed automatically.

Now the scope of UPI service is going to increase. Through the single block and multiple debit feature, you will be able to block a fixed amount in the account of your merchant, shopkeeper, or other platforms at the same time and whenever needed, the related amount will be deducted from the account for different purposes.

Understand in simple language, the customer can make payment to the concerned body by blocking the amount in his bank account at one go for deducting the money whenever required. At this time, if you block the amount, then this process has to be done separately and under the facility of auto debit, a different amount is deducted from your bank account.

According to RBI, payment for e-commerce and other investments will be easier with this system. According to the statement, this will increase confidence in transactions as merchants will be assured of timely payments. Whereas the amount will be lying in the customer's account till the goods or services are received. Also, know what is happening there.

At present, UPI has the facility of time-bound transactions and single block and single debit. Over 70 lakh auto payments happen every month and more than half of the Initial Public Offer (IPO) applications use the block feature of UPI.

RBI says that a guideline will be issued soon to the National Payments Corporation of India i.e. NPCI in this regard. At the same time, the scope of the Bharat Bill Payment System will also be expanded. In this, now professionals will be included in the facility of paying education fees, paying taxes, and taking loans on a fixed period.

At present, individuals do not have the facility to make payments at different times or to pay the amount received by individuals, rather it needs to be paid at a fixed time. Shaktikanta Das said the new system would make BBPS accessible to a wider group of individuals and businesses. Announcing the coming of the monetary review policy from the RBI, an increase of 35 basis points in the repo rate has been announced.

It has reached 6.25% after increasing the repo rate five consecutive times. This is the fifth time since May that the repo rate is seeing a rise. Along with this, RBI has expressed hope of coming down in the inflation rate in the coming time.

Let's talk about some other big things of the RBI MPC meeting.

Bharat Bill Payment System, you will now get both recurring and non-recurring payment systems. The Consumer Price Index i.e. CPI will be 5.4% in the second quarter of FY 24. If we talk about FY23, then the growth estimate has been reduced from 7% to 6.8%. If we talk about the estimated GDP growth for the first quarter of FY 24, then it has been reduced from 7.2% to 7.1%.

Talking about rural demand, rural demand has also improved. Talking about the currency market, the timing of the currency market will be from 09:00 am to 5:00 pm. And finally, let's talk about IFSC. The gold price range in IFSC is approved for hedging.

Let's know, what is gold hedging. Gold metal is used to hedge against macroeconomic events. Hedging allows gold fabricators and dealers to lock in prices and reduce price risk. It will help traders hedge their positions against price fluctuations and unfavourable currency movement. This will also lead to an increase in volumes and activities at IFSC.

We hope you like the information. If you have any question, then do not forget to comment on our site www.tradeipohub.co.in. Also, stay with us for business-related news.

How will RBI's decision affect you? | RBI gave the good news to add a great feature of UPI.