RBI MPC Meet 2024 Highlights: Repo Rate Remains Unchanged at 6.5%, Check Summary

RBI MPC Policy 2024: After the review of the latest RBI monetary policy, the RBI has decided to keep the repo rate unchanged at 6.5% for the 10th consecutive time . The standing deposit facility (SDF) rate remains unchanged at 6.25% and the marginal stading facility (MDF) rate and Bank Rate remains unchanged at 6.75%/. 

The GDP growth for 2024-25 is projected at 7.2%

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Consumer Price Index (CPI) inflation for 2024–25 is projected at 4.5%,

Quarter Wise Projection of CPI

Q2 - 4.1%

Q3 - 4.8%

Q4 - 4.2%.

Q1 of 2025–26 - 4.3%.

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Additional Measures Annouced for UPI

A limit of ₹500 per transaction and an overall limit of ₹2000 per UPI Lite wallet, is presently applicable, with the facility of auto-replenishment. To widen the scope of usage of this product, it has now been decided to increase the UPI Lite wallet limit to ₹5,000 and per-transaction limit to ₹1,000.

UPI123 was launched in March 2022, with a view to enable feature-phone users to use UPI. This facility is now available in 12 languages. Currently, the per-transaction limit in UPI123Pay is capped at ₹5000. In order to widen the use-cases, in consultation with the stakeholders, it has been decided to enhance the per-transaction limit to ₹10,000. Necessary instructions will be issued to NPCI shortly

Some Important Banking Terms for Bank Exams:

Below, we have explained some of the banking related terms that are asked in the bank jobs examination

Bank Rate - It is the rate of interest at which the RBI provided loans to the banks.

Repo Rate -  When commercial banks want short term liquidity, they can keep their securities with the central bank and get the funds. However, they are obliged to buy back these securities at a later date and the consequent rate of interest charged by the central bank is called repo rate

Reverse Repo Rate - It is the rate at which Reserve Bank gets the money from commercial banks

Cash Reserve Ratio - It refers to the minimum funds that banks have to keep with the RBI.

Inflation: It is a general increase in the prices of goods and services in an economy. It is measured using the consumer price index (CPI). 

CPI: The full form of CPI is consumer price index. It is the price index that is used to measure inflation. The formula to calculate CPI is provided below

CPI = (Cost of a Fixed Basket of Goods and Services in the Current Year/cost of a Fixed Basket of Goods and Services in the Base Year) * 100

GDP: The full for GDP is Gross Domestic Product. It measures the monetary value of final goods and services those that are bought by the final user, produced in a country in a given period of time.

Liquidity: It indicates how easily assets may be transformed into cash. It is a measure of the capacity to buy or sell assets quickly without producing significant price movement and with minimal value loss.