Amidst the ever increasing transactions through UPI, reports of fraud from customers are also increasing. RBI has said that after fraud in UPI transactions, customers will be given compensation up to Rs 25,000. This is being considered a big relief for the common consumers. RBI has decided not to make any change in the repo rate. Repo rate will remain at 5.25 percent only. Before this, for about a year, RBI had tried to control inflation by cutting the repo rate by 125 basis points and reducing cash from the market. The Reserve Bank has said that there is still liquidity of Rs 2 lakh crore available in the market. Inflation is expected to remain at four and 4.2 percent in the first and second quarters of the new financial year. RBI has indicated to make it easier for MSME sector and farmers to take loans.
What announcement was made for MSME sector?
The central government has taken measures to increase investment and employment in the budget for the financial year 2026-27. Taking forward the same policy of the government, Reserve Bank of India has also talked about simplifying the process of taking loan without guarantee up to Rs 10 lakh for the MSME sector and increasing the loan limit. This is likely to bring huge benefits to the small entrepreneurs of the country. This will also increase the possibility of creating new opportunities on the employment front. Amidst global uncertainties and India’s agreements with various countries, the Reserve Bank of India has estimated India’s growth rate to be at 7.4 percent. This is slightly more than the earlier estimate of 7.3 percent.
Consideration of changing the rules related to Kisan Credit Card
Farmers have got huge benefits from Kisan Credit Card. To extend this benefit to more farmers, RBI is considering changing its rules. Its objective is to make cheap loans easily accessible to more farmers. RBI will release a portal regarding this. It has also been proposed to increase the flow of foreign capital into the country by increasing the limit of foreign investment in companies whose direct dealings with common customers are limited and their scope of work is also limited.
Stock market decline amid MPC decisions
The stock market fell even before the RBI announced its monetary policy and is trading in the red even after repo rates remained the same. There was also pressure on foreign exchange reserves due to the outflow of foreign capital. But on Friday, the Reserve Bank said that the country’s foreign exchange reserves remain at $723.8 billion. The position of the rupee is likely to improve with the purchase of gold.
