Reserve Bank of India keeps key interest rate unchanged for third time: According to the Reserve Bank of India (RBI) Monetary Policy, released in August 2023, the RBI’s Monetary Policy Committee (MPC) unanimously decided to keep the repo rate unchanged at 6.5 percent.
Daily Current Affairs Quiz: August 2023
Other Highlights:
The standing deposit facility (SDF) rate remains at 6.25%.
The marginal standing facility (MSF) rate and the Bank Rate at 6.75%.
RBI has revised the CPI inflation target for the current fiscal to 5.4%.
Projected real GDP growth for 2023-24: 6.5%
RBI said it will come out with a framework allowing borrowers to switch to fixed interest rate from floating interest rate. The move will provide relief to borrowers of home, auto and other loans. Reserve Bank Governor said, under the framework, to be put in place shortly, the lenders will have to clearly communicate with the borrowers about tenor and EMI. He said, the supervisory reviews undertaken by the Reserve Bank and the feedback and references from members of public have revealed several instances of unreasonable elongation of tenor of floating rate loans by lenders without proper consent and communication to the borrowers.