Reacting to the monetary policy review announced by the Reserve Bank of India (RBI) today, State Bank of India Chairman Mr. Dinesh Khara said that the RBI Policy Statement has reaffirmed the commitment to bring inflation down further and ensure financial stability in markets. He said that, in principle, RBI from its vantage position has harmonised key measures, ensuring the economy remains cushioned to the maximum extent from the impact of inflation in everyday lives.
Mr. Khara said, the developmental measures are largely aimed at ensuring broad-based participation in G-Sec and the foreign exchange market. He also said, the impact of the Bharat Bill Payment system is likely to play out over the medium term.
Mr. Anant Singhania, the President of the Indian Merchants’ Chamber said that RBI has delivered an extremely balanced and prudent policy.
He said, considering that inflation continues to be high at seven per cent, although below 7.8 per cent in the previous quarter, it is extremely wise to raise the Repo rate by 50 basis points to 5.4 per cent. He said, the aim of RBI is to bring inflation down to at least six per cent, the tolerance band, by the beginning of the next financial year. On new development initiative, allowing NRIs to make cross-border payments on the Bharat Bill pay system of NPCI is a laudatory initiative that will strengthen the payments ecosystem and benefit consumers.