Mr Rachit Chawla, CEO Finway FSC
It is not certain that the Reserve Bank of India (RBI) will increase the lending rate by 25 basis points. Most importantly, if the inflation is still not easing, and everything is getting expensive, the central bank will have to bring in hikes on the repo rates to maintain financial stability. It is a hands down fact that with the hike in the repo rates, the non-banking financial companies (NBFCs) will also have to increase their subsequent lending rate and the burden will be on the consumers. It will be challenging to grow the loan book for NBFCs if the lending rate has increased any further, but I think that is a bold measure that the RBI needs to take in terms of controlling inflation.
Mr.Mahesh shukla CEO & Founder PayMe
While retail inflation is slightly softening, for India to navigate through the global economic disruptions by maintaining a steady economy, the Reserve Bank of India (RBI)’s might once again impose a hike in the repo rate; but it is expected to settle for a smaller 25 basis points hike. The central bank has increased the short-term lending rate by 225 basis points to tide over the concerns of inflation can mostly be accredited to the supply chain disruptions caused due to geo-political factors. The hike in the lending rates by RBI will certainly have an impact on the non-banking financial companies (NBFCs) and Fintechs, and might eventually have an impact on the customers, but it should also be noted these are short-term disruptions to ward off bigger financial crises. While the downside of the global economy still continues, the domestic economy is showing an uptick and resilience, mostly because of the strict moves of repo rate hikes taken by the apex financial regulatory body. The RBI is now expected to ease the hike in the repo rate by 25 basis points, viewing gradual financial stability and maintaining a prolonged wait-and-watch approach.