The RBI Governor shared news about recent decisions made in the Monetary Policy Committee meeting.
He mentioned that, with everyone’s agreement, the repo rate will stay the same for the fifth time.
Additionally, there’s good news for UPI users—the transaction limit has been raised to Rs 5 lakh, allowing you to make payments up to this amount at once, compared to the previous limit of one lakh rupees.
New Payment Rules
Under the updated rules, you can now make payments of up to Rs 5 lakh at a time using UPI, especially for transactions in hospitals and educational institutions.
Economic Growth and Inflation Concerns
The RBI Governor increased the GDP growth estimate from 6.50% to 7%, with expectations of 6.7% growth in the first quarter of the new year.
However, there are concerns about inflation, particularly the rise in food inflation.
The RBI aims to achieve a 4% inflation rate, and although the overall inflation rate is expected to be around 5.4% for the entire financial year, there’s ongoing effort to meet the target.
Inflation and Government Measures
The Governor expressed worry about the food inflation rate despite overall soft inflation.
The retail inflation rate is anticipated to be 5.6% in the third quarter and 5.2% in the fourth quarter of the current financial year.
A survey by Reuters suggests the possibility of increased retail inflation in November.
The government has extended the ban on onion exports to control rising prices, influenced by concerns about inflation. In October, the inflation rate had decreased to 4.87%.
