AK Tewari discusses the importance of adapting LCR monitoring to digital times to prevent rapid bank runs due to the instant withdrawal capability, emphasizing the critical role of deposit gathering in the banking sector amid ongoing transformations. Tiwari also says: "For all banks, especially the deposit gathering and focus will be the key thing for the next several quarters."
RBI will announce decision on repo rate today at 10 AM. Later today, Governor Shaktikanta Das will hold press conference at 11 AM. Analysts expect India’s central bank to keep rate unchanged at 6.5%, in line with stance taken by other central banks. RBI has maintained this rate since February 2023.
The RBI MPC decides to keep the policy repo rate under LAF at 6.5%. This is the 7th time that MPC keeps the rate unchanged. These decisions are taken in order to achieve the mid-term target of keeping CPI inflation at 4%.