RBI MPC policy announcement by Mr. Sandeep Ahuja, CEO, Atmosphere Living
“The RBI’s decision to maintain the repo rate is a significant boost for the real estate sector, ensuring stability in home loan interest rates and fostering confidence among both buyers and developers. For homebuyers, steady rates offer clarity and encourage more people, including those on the fence, to take the plunge into homeownership. For developers, stable borrowing costs mean better financial management and smoother project execution, helping to meet market demand efficiently.
In the luxury real estate segment, the unchanged interest rates are particularly favorable for high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs), who continue to see real estate as a reliable investment. Recent trends indicate a surge in the sales of ultra-luxury homes, reflecting the growing appetite for premium properties that combine lifestyle and long-term value. Reputed developers with a proven track record of quality construction and timely delivery are well-positioned to capitalize on this trend, catering to buyers who prioritize exclusivity and high standards.”
RBI Monetary Policy commentary by Sakshi Gupta
“The RBI opted for a wait and watch mode in todays’ policy, keeping its stance and policy rate unchanged as expected. The central bank successfully engineered a fine balance in its communication between the need to remain cautious on growth while achieving price stability. The growth forecast was revised down by 60bps to 6.6% while inflation was revised up to 4.8% for 2024-25. We expect GDP growth to average at 6.4% in FY25, with some pick-up in momentum in the second half of the year.
The more substantive announcement in today’s policy came in terms of the support for liquidity conditions through a CRR cut of 50bps, which is estimated to add INR 1.1 lakh crore of liquidity to the system. Banking system liquidity has come under pressure in recent days on account of tax outflows, foreign outflows and higher currency leakage. We expect the RBI to continue providing more “durable” support for liquidity through various measures including longer-duration fine tuning operations, Open Market Operations, and sterilising its FX interventions.”
“A February rate cut remains on the table, especially if growth momentum fails to pick-up meaningfully over the coming weeks. That said, a rise in global uncertainty and pressure on the rupee or domestic inflation could nudge the RBI to delay any rate cuts to the April policy – preferring prudence and patience over pre-emptive action.”
Mr. Vinod Francis, GM & CFO, South Indian Bank:
“The RBI’s Monetary Policy Committee (MPC) decision to retain the repo rate at 6.5% highlights its balanced approach to supporting growth while keeping inflation under control.
Acknowledging growth-inflation concerns, the decision to reduce the Cash Reserve Ratio (CRR) by 50 basis points is a prudent move that will inject liquidity into the banking system. This well-calibrated measure will not only enhance banks’ lending capacity but also make credit more accessible to borrowers. Demonstrating vigilance, the policy reflects a practical approach amidst global uncertainties and domestic economic developments. Demonstrating vigilance, the policy reflects a practical approach amidst global uncertainties and domestic economic developments while ensuring financial stability.”
Mr. Dilip Modi, Founder & CEO of Spice Money
“The Reserve Bank of India’s decision to increase the UPI Lite wallet limit to ₹5,000 and enhance the per-transaction limit to ₹1,000 marks a significant milestone in fostering a more inclusive digital payment ecosystem. This move directly addresses the needs of individuals in regions with inconsistent internet access by enabling faster, more convenient offline transactions, particularly for small-value payments.
This initiative further strengthens the foundation for a robust and secure digital payments framework by expanding the reach of UPI to new user segments. It also encourages small-scale merchants and consumers to adopt digital payment methods, reducing dependency on cash transactions. Moreover, this step reflects India’s commitment to leveraging technology for financial inclusion, ensuring that the benefits of digital payments extend to the most underserved communities.
At Spice Money, we see this as a crucial step in bridging the digital divide between urban and rural India. The UPI Lite feature, which functions without requiring internet connectivity, is particularly suitable for remote areas where reliable internet access is scarce. This advancement aligns with our mission to empower underserved communities by providing them with seamless and secure digital payment options. It will not only drive financial literacy and trust in digital payments but also strengthen the shift towards a cashless economy, boosting financial empowerment across the country.”
Jaya Vaidhyanathan, CEO, BCT Digital.
“The Reserve Bank of India’s launch of MuleHunter.AI marks a significant step forward in the fight against financial frauds involving mule accounts. These frauds have become a significant challenge for the banking industry and the Indian economy, with some large banks reporting fraudulent transactions of Rs. 400-500 crore every month. These accounts, often used to launder proceeds of cybercrimes, undermine trust in the financial system. In a notable move, the Center recently froze around 4.5 lakh mule bank accounts in the past year, showcasing the scale and urgency of the issue.
At BCT Digital, we have devised a solution, which leverages real-time monitoring to alert banks about money mules and avert frauds. It utilizes machine learning to predict and prevent fraud, providing early warning signals to banks by identifying suspicious accounts and alerting them in real time. This proactive approach strengthens the financial system by disrupting fraudulent networks and reducing the reliance on reactive measures.
As the fight against mule accounts intensifies, it is crucial to foster collaboration between regulators, banks, and technology providers. The RBI’s continued focus on initiatives like the ‘Zero Financial Frauds’ hackathon and MuleHunter.AI underscores the importance of building a robust, technology-driven framework to safeguard India’s financial ecosystem.”
Mr. Amit Sachdev, COO, M1xchange
“The RBI’s move to establish the Framework for Responsible and Ethical Enablement of AI (FREE-AI) is a step forward in enabling innovation and inclusivity in the financial sector within defined boundaries. AI-driven underwriting models can transform credit assessments, enhance efficacy and efficiency, reduce NPAs, and improve the viability of catering to the smaller customer segments. At M1xchange, we believe this will strengthen the adoption of alternative credit assessment tools by financial institutions. This advancement promises greater transparency and efficiency in lending, driving greater adoption and sustainable growth in the priority sector.”
Mr.Pushkar Mukewar, Founder & CEO, Drip Capital.
“The RBI’s decision to link the FX-Retail platform with the Bharat Connect platform of NPCI is a crucial step towards democratizing access to foreign exchange for MSMEs. By integrating FX-Retail into the apps of banks and non-bank payment system providers, this initiative simplifies registration and transaction processes for businesses that are critical drivers of India’s export economy.
For MSMEs, which often grapple with opaque pricing and limited access to competitive forex rates, this move ensures greater transparency, fairness, and cost-efficiency. The enhanced user experience and security provided by this linkage will empower MSMEs to manage their foreign exchange needs with confidence, reducing the burden of hidden costs and inefficiencies.
We see this as a critical milestone in India’s journey to boost export competitiveness and enable MSMEs to thrive in the global market. This alignment of technology and policy will not only streamline forex transactions but also bolster the resilience of small businesses, ultimately driving India’s growth story forward.”
Vishal Sharma, Cofounder & CEO of AdvaRisk,
“RBI has prudently taken into account the rising input cost to raise the limit for collateral free agri loans to Rs 2 lakh from Rs 1.6 lakh earlier. This will be a boon for small farmers and equip them to better adapt to the challenges of rising cost of farming activities. That said, collateral free loans come with their own set of risks. Lenders should build robust risk management strategies to cope with fresh developments. While onboarding borrowers, it is vital for lenders to vet any properties they own, and their income, which will help establish repayment ability of borrowers. They also should use the latest technology to enhance the real-time monitoring efforts to keep risks in check.
Besides, RBI is also setting up a committee to recommend Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the financial sector. We look forward to their recommendations, compliance to which will ensure that AI is not misused in any way.”
Dr. HP Singh, CMD, Satin Creditcare Network Ltd.
“The decision to cut CRR is a pivotal move by the RBI to ease liquidity thereby helping accelerate economic activities and drive growth. The festive-driven surge in rural demand and the overall resilience signals improving economic activities in the hinterlands, which will drive the revival of the MFI industry.
Additionally, the Central Bank’s announcement of creating an AI panel can revolutionize the microfinance industry by enhancing operational efficiency, transparency, and scalability. AI-driven underwriting models streamline credit assessments, reduce NPAs, and boost profit margins. At Satin Creditcare, we have always been buoyant about the potential of innovative technologies in driving efficiency in the lending space. Embracing AI enables MFIs to navigate challenges and achieve sustainable growth.“
Vaidyanathan Srinivasan, Operating Partner ,Essar Capital
“The Monetary Policy Committee’s widely anticipated decision to keep interest rates unchanged is a prudent and measured step. This along with a neutral monetary stance sends a strong signal of economic stability, which is vital for core sectors of the country.
This move supports steady financing conditions, enabling businesses to focus on executing large-scale infrastructure projects and advancing renewable energy investments. Predictable borrowing costs are essential for fostering growth and innovation in these capital-intensive sectors. As India continues to push for sustainable development and improved infrastructure, the RBI’s policy ensures that the momentum in these sectors remains uninterrupted, contributing significantly to the nation’s long-term economic goals.”
Dhanpat Nahata, Managing Partner – Essar Capital
“The RBI’s decision to maintain the repo rate at 6.5% for the 11th consecutive time and reduce the Cash Reserve Ratio (CRR) from 4.5% to 4% is a timely and strategic move. Amidst heightened global uncertainties, rising energy costs, and fluctuating commodity markets, this monetary policy stance ensures financial stability and enhances domestic liquidity. The reduction in CRR might inject additional funds into the banking system, encouraging banks to lend more to corporates, particularly in critical sectors such as energy and infrastructure.”
Mr. CS Setty, Chairman, SBI:
“The monetary policy announcements made today are pragmatic, candid and has crossed important milestones in regulatory and development policy space. The cut in CRR by 50 bps, raising the FCNR (B) deposit rates, development of the Secured Overnight Rupee Rate (SORR) benchmark and revision in limit of collateralised agriculture loans are all positive for banks. The decision to form a committee to investigate the issue of ethical AI in financial services and use of technology to detect mule accounts is timely”.
Monetary policy quote by K Paul Thomas, MD and CEO, ESAF Bank.
“The decision to extend UPI credit line to small finance banks will play out as a game-changing decision for players like us since we can now onboard those who are new to credit with pre-approved loans. This will deepen the process of financial inclusion further. Also, the hike in the limit for collateral-free agriculture loans will lead to an uptick in rural credit and help ease financial conditions of farmer-households”.
Mr. Dilip Modi, Founder & CEO of Spice Money
“The Reserve Bank of India’s decision to increase the UPI Lite wallet limit to ₹5,000 and enhance the per-transaction limit to ₹1,000 marks a significant milestone in fostering a more inclusive digital payment ecosystem. This move directly addresses the needs of individuals in regions with inconsistent internet access by enabling faster, more convenient offline transactions, particularly for small-value payments.
This initiative further strengthens the foundation for a robust and secure digital payments framework by expanding the reach of UPI to new user segments. It also encourages small-scale merchants and consumers to adopt digital payment methods, reducing dependency on cash transactions. Moreover, this step reflects India’s commitment to leveraging technology for financial inclusion, ensuring that the benefits of digital payments extend to the most underserved communities.
At Spice Money, we see this as a crucial step in bridging the digital divide between urban and rural India. The UPI Lite feature, which functions without requiring internet connectivity, is particularly suitable for remote areas where reliable internet access is scarce. This advancement aligns with our mission to empower underserved communities by providing them with seamless and secure digital payment options. It will not only drive financial literacy and trust in digital payments but also strengthen the shift towards a cashless economy, boosting financial empowerment across the country.”
