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Economic Times
5 days ago
- Business
- Economic Times
RBI to soon release discussion paper on flexible inflation targeting framework
Synopsis The Reserve Bank of India is set to release a discussion paper on its flexible inflation targeting (FIT) framework, which mandates maintaining CPI inflation at 4% with a +/- 200 basis points band. As the current target is valid until March 2026, the review will involve public consultation and government input, considering the debate around targeting non-food inflation. Reuters Reserve Bank of India The Reserve Bank of India will soon issue a discussion paper on the flexible inflation targeting (FIT) framework, said governor Sanjay Malhotra. Formally adopted in 2016, the current FIT framework tasks the RBI with keeping retail inflation measured by Consumer Price Index at 4% in the medium term, with a band of 200 basis points on either side providing it with flexibility. 'Our target is certainly headline inflation. The FIT is due for a review. Every five years we do it. There is a discussion paper, which we are preparing. We will open to public consultation. The final view has to be taken by the government. We will give our views to the government as to how we should move ahead in this regard,' Malhotra said. The inflation target is valid until March 2026 and its review comes amid talk of whether monetary policy should target non-food inflation. Malhotra said that both headline CPI as well as core inflation are important. 'There is higher volatility in food prices. They can be transient. And sometimes, we have to look through if we feel that some of the inflation is because of transient reasons,' he said. Core inflation excludes volatile components of food & fuel.
Economic Times
5 days ago
- Business
- Economic Times
RBI announces three consumer-centric steps for re-KYC, easier bank claims and retail investing
Reuters Reserve Bank of India (RBI) Governor Sanjay Malhotra. In a move aimed at making banking services more accessible and user-friendly, the Reserve Bank of India (RBI) on Wednesday announced three key measures for individual customers -- ranging from simplifying procedures for families of deceased bank account holders to improving access to government bond markets. RBI Governor Sanjay Malhotra, speaking after the central bank's Monetary Policy Committee (MPC) meeting, said the initiatives are aimed at improving convenience and financial inclusion. Doorstep re-KYC and financial services 'With the Pradhan Mantri Jan Dhan Yojana completing ten years, a large number of accounts are now due for re-KYC,' Malhotra said. To address this, banks will hold camps at the panchayat level from July 1 to September 30. These camps will assist customers with the re-KYC process and also provide information and services related to micro-insurance, pension schemes, and grievance redressal. 'This will bring financial services closer to people's doorsteps,' he said. Simplified claims for deceased customers' accounts The RBI also announced that it would standardise the settlement process for claims relating to deceased bank customers. This includes streamlining procedures for accessing funds in accounts and recovering contents from safe deposit lockers and other custodial arrangements. 'This move is aimed at making the claims process simpler and more convenient for families,' Malhotra Direct gets an upgradeThe third announcement relates to the RBI's Retail Direct platform, which allows individuals to invest in government securities. The platform will be upgraded to offer more tools to help retail investors plan and manage their investments. 'We are expanding the features on the Retail Direct platform to allow retail investors to create and manage investment plans more easily, enhancing accessibility and flexibility for individual investors,' the Governor the three initiatives reflect the RBI's ongoing effort to reduce friction in the banking system and expand financial services across rural and urban India.
Economic Times
23-07-2025
- Business
- Economic Times
Indian economy remained fluid amidst tariff policy uncertainties: RBI Bulletin
Synopsis Despite global economic uncertainties, India's economic activity remained stable in June and July, according to the Reserve Bank of India's Bulletin. The report highlighted positive prospects for the kharif agricultural season, sustained momentum in the services sector, and moderate industrial growth. Reuters Reserve Bank of India (RBI) India's economic activities held up during June-July amidst geopolitical tensions and tariff policy uncertainties, Reserve Bank's Bulletin said on Wednesday. An article on 'State of the Economy' in July Bulletin said the global macroeconomic environment remained fluid in June and July so far amidst geopolitical tensions and tariff policy uncertainties. "Domestic economic activity held up, with improving kharif agricultural season prospects, continuation of strong momentum in the services sector and modest growth in industrial activity," it bulletin also mentioned that headline CPI inflation remained below 4% for the fifth consecutive month in June driven by deflation in food prices. System liquidity remained in surplus to facilitate a faster transmission of policy rate cuts to the credit markets. The external sector remained resilient, backed by ample foreign exchange reserves and a moderate external debt-to-GDP ratio, it central bank, however, said the views expressed in the Bulletin article are of the authors and do not represent the views of the Reserve Bank of India.
