Ajit Karn
Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Monday, while reciting the monetary policy statement following a three-day deliberation, that banks can now issue RuPay Prepaid Forex cards.
It will increase the global reach and adoption of RuPay cards.
The RBI Governor stated that RuPay Debit and Credit Cards issued by Indian banks are acquiring popularity abroad.
“It has been decided to allow banks to issue RuPay Prepaid Forex cards. This will increase the payment methods available to Indians traveling abroad. In addition, RuPay cards will be issued in foreign jurisdictions, according to Das.
The RBI’s monetary policy committee voted unanimously to maintain the repo rate at 6.5 percent. Repo rate is the interest rate at which the Reserve Bank of India lends to other institutions.
Consistently falling inflation (currently at its lowest level in 18 months) and the possibility of further decline may have prompted the central bank to once more reduce the key interest rate. The vast majority of analysts anticipated that the RBI would leave the repo rate unchanged.
Inflation has been a concern for many nations, including developed economies, but India has been able to effectively manage its inflation trajectory. The RBI suspended the repo rate at its April meeting, the first of the fiscal year 2023-24.
In an effort to combat inflation, the RBI has cumulatively increased the repo rate by 250 basis points to 6.5% since May 2022, excluding the month of April. Raising interest rates is a monetary policy instrument that typically aids in stifling economic demand, thereby reducing inflation.
Also read this:RBI lowered India’s 2023-24 inflation forecast to 5.1 pc
Regarding the GDP outlook, the RBI anticipates India’s 2023-24 GDP growth to be 6.5%, with Q1 growth of 8%, Q2 growth of 6.5%, Q3 growth of 6%, and Q4 growth of 5.75%. Today, while reading the monetary policy statement, the governor of the RBI, Shaktikanta Das, stated that the central bank considers the risks to these GDP figures to be evenly balanced.
