Urban co-op banks can have doorstep banking: RBI
June 08, 2022 10:44
Update: The Reserve Bank of India (RBI) on Wednesday raised the interest rate by 50 basis points to a two-year high of 4.9 per cent as it doubled down to tame inflation that has surged in the last couple of months.
The rate hike comes on the back of a 40 bps increase effected by RBI at an unscheduled meeting on May 4. All the six members of the Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, unanimously voted for the latest rate hike.
Das said inflation is likely to remain above 6 per cent in first three quarters of current fiscal.
The RBI raised inflation forecast to 6.7 per cent for FY23 from an earlier estimate of 5.7 per cent.
"The upside risk to inflation persists; a recent spike in tomato, crude prices fuelling inflation," Das said.
The RBI now permits rural cooperative banks to extend finance to commercial real estate. Urban cooperative banks allowed to provide door-step banking services.
The RBI Guv says overall situation remains challenging, committed to dealing with challenges emanating from overseas. The RBI is focussed on orderly government borrowing programme.
A further cut in VAT by states on motor fuel can further soften inflation.
RBI retains its growth projection at 7.2 per cent for current fiscal.
TOP STORIES
© 2024 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Feedback - About us - Terms of use - Grievances