As expected, the benchmark rates were kept unchanged with an accommodative stance. The economic outlook sounded more optimistic as the major indicators such as agriculture and allied activities, spending on travel and tourism, GST receipts and air passenger traffic indicated a more robust and broad-based recovery. The persistently high core inflation however remained a key figure determining the path of policy.
The liquidity measures such as fortnight guidance on 14-day VRRR auctions and re-establish it as the main liquidity management operation, banks given with one more option to pre-pay outstanding funds availed through TLTRO 1.0 and 2.0 scheme are a welcome and calibrated steps towards liquidity normalization.
Measures such as RBI approval not required by banks prior infusing capital in overseas branches and subsidiaries, initiation on Streamlining of charges in the digital payment system, bringing feature phone users into the mainstream digital payments, enabling small value transactions through wallet, enhancing the transaction limit for payments through UPI for Retail Direct Scheme and IPO applications are all steps towards a more conducive, affordable and inclusive banking.