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Indian Bank Association’s Chairman A.K. Goel commented that RBI has adopted a well-balanced approach to Monetary Policy. Mr Goel mentioned that the inflation numbers of RBI are indicating a downward trajectory, which also signals that both Monetary Policy and Fiscal Policy measures adopted during the financial year 2024 have yielded the desired results, which are quite positive for the market and policymakers.

Mr Goel highlighted that introducing a Principle-Based framework for Authentication of Digital payment transactions is expected to enhance the security of transactions.

The State Bank of India’s (SBI) Chairman Dinesh Khara, mentioned that the Monetary Policy Committee, MPC’s decision to hold rates and stance was expected, but the set of regulatory decisions holds out a pragmatic and steadfast approach in the quest for digital robustness, customer centricity and price discovery. Mr Khara further added that having a key fact statement regarding retail and MSME advances will empower customers to make informed decisions.

Siddhartha Sanyal, Chief Economist and Head of Research, at Bandhan Bank, said that the status quo in the repo rate in today’s MPC meeting was no surprise and does not expect the repo rate to be lowered quickly for another six months. Mr Sanyal expressed that amid widespread concerns about liquidity tightness, the RBI’s communication suggested that government spending should help infuse liquidity in the banking system.