- cautious on prices and positive on growth
The Reserve Bank of India’s decision to keep both the policy rate as well as its monetary stance unchanged at neutral is along the expected lines. This policy review is in the backdrop of rising inflation risk.
The tone of the policy is noticeably cautious on prices and positive on growth. It is also to be noted that the future policy actions will largely depend on data facts.
Augmenting the increase in Digital payments, the introduction of differentiated Merchant Discount Rate and a cap on the absolute amount of MDR for Debit card transactions is expected to increase acceptance of Debit card usage and will also bring down the cost of transactions for small merchants.
Overall the outlook of MPC is supportive to the growth of the Economy.
Shri Ashwani Kumar, Chairman & Managing Director, Dena Bank