Consumer Protection New Focus Of RBI

(MENAFN- KNN India) New Delhi, Feb 8 (KNN) The Reserve bank of India (RBI) announced its first rate reduction in five years, with Governor Sanjay Malhotra expressing strong optimism about India's economic trajectory.

Consumer protection emerged as a key theme during the briefing, with Malhotra emphasising the RBI's zero-tolerance approach toward bank mis-selling practices.

The Monetary Policy Committee (MPC) cut the repo rate by 25 basis points to 6.25 percent, marking the first adjustment in two years. During the subsequent press briefing, Malhotra emphasised that achieving a 7 percent growth rate or higher should be a national aspiration for India.

The central bank maintained its growth projections, forecasting a GDP growth rate of 6.6 percent for FY25 and 6.7 percent for FY26. Malhotra explained that the current focus on growth stems from declining inflation trends, though he reaffirmed that price stability remains the RBI's primary mandate under the RBI Act.

The latest economic indicators show CPI-based inflation at 5.2 percent in December 2024, while WPI increased to 2.37 percent from November's 1.89 percent.

Deputy Governor Swaminathan J elaborated that most regulatory issues are resolved through bilateral dialogue, with public enforcement actions reserved for the most serious violations.

The central bank also announced plans to establish new web domains for Indian banks and NBFCs to help consumers identify legitimate financial institutions.

On the regulatory front, Malhotra assured that implementation timelines for new policies, including the Liquidity Coverage Ratio norms, would be reasonable to prevent market disruption.

He noted that the Expected Credit Loss framework remains in the discussion phase, while new project finance guidelines are scheduled for implementation by March 2026.

Despite acknowledging global economic uncertainties, Governor Malhotra expressed confidence in India's economic resilience, citing robust manufacturing activity, stable consumption patterns, and favorable agricultural conditions.

While the RBI's current stance prioritises growth, Malhotra emphasised that the central bank maintains a neutral policy position, ready to adapt to evolving macroeconomic conditions.

(KNN Bureau)

MENAFN08022025000155011030ID1109182640