RBI Monetary Policy June 2024 Highlights: RBI holds repo rate at 6.50%; forecasts 7.2% GDP growth for FY25

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Aspirational Goals for RBI@100 in a Multi-Year Time Frame:

1. Monetary Policy and Liquidity Management

 Positioning the Reserve Bank as Leader of the Global South

 Review of Monetary Policy Framework to address:

 Balancing price stability and economic growth from an Emerging Market Economy (EME) perspective;

 Refinements in monetary policy communication; and

 Spillovers to EMEs from private and public debt overhang in systemically important economies.

2. Globalisation of India’s Financial Sector

 Financial Sector Reforms related to:

 Expanding banking domestically in consonance with national

growth;

 Positioning 3-5 Indian banks among top 100 global banks in terms

of size and operations;

 Deepening and modernisation of financial

markets/institutions/infrastructure; and

 Supporting International Financial Services Centres Authority

(IFSCA) to make GIFT City a leading international financial centre.

3. Making Reserve Bank’s Supervision a Global Model

 Risk Focused Supervision:

 Supervisory culture for effective risk discovery; and

 Ensuring an appropriate compliance culture at Supervised

Entities (SEs).

 Building ‘Through the Cycle’ Risk Assessment Framework by

continuous Horizon Scanning and Holistic Risk Assessment;

 Customer-centric supervision: Improving the conduct of SEs to protect

and promote customers’ interests through appropriate supervisory

focus;

 Effective Corrective Actions: Focus on prudent supervisory judgement

and assessing supervisory effectiveness; and

 Creating a Data Analytics Universe.

4. Deepening and Universalisation of Digital Payment Systems

Domestically and Globally

 Internationalisation of India’s Payment Systems – UPI/RTGS/NEFT;

 Participation in Payment Systems Linkage Projects across countries – bilateral & multilateral;

 Increasing the domestic usage of digital payments – Har Payment Digital; and

 Phased implementation of Central Bank Digital Currency (e – Rupee).