Highlights of RBI's 1st bi-monthly monetary policy of FY23

Following are the highlights of the RBI's first monetary policy statement of 2022-23 unveiled by Governor Shaktikanta Das:

• Policy repo rate unchanged at 4%; marginal standing facility rate & bank rate too remain unchanged at 4.25%.
• Monetary stance to be accommodative with focus on withdrawal of accommodation to keep inflation within target.
• GDP growth projection for FY'23 slashed to 7.2% from 7.8%; growth projections based on assumption of crude oil (Indian basket) price at $100 a barrel during FY'23.

• Inflation forecast hiked to 5.7% for FY'23 from 4.5%.
• Escalating geopolitical
  tensions to cast a shadow on economic outlook.
• Robust Rabi output to support recovery in rural demand, pick-up in contact-intensive services.
• Investment activity to gain traction with improving business confidence, pick up in bank credit, government capex plans.
• Opening time for RBI regulated financial markets to be restored to pre-pandemic timing of 9:00 am from April 18.
• Gradual withdrawal of Rs 8.5 lakh crore liquidity overhang to be undertaken over several years.
• Rationalised housing loans norms extended till March 31, 2023.
• RBI will come out with a discussion paper on climate risk and sustainable finance.
• Committee to be set up for review of customer service standards in RBI regulated entities.
• Card-less cash withdrawal facility to be extended to all banks and ATM networks using the UPI.