RBI News: EMI will Not increased in 2024

7th Time No hike in Repo Rate From RBI, was Like 6.5%

In April 2024, Reserve Bank Of India (RBI) made no change in interest rate for the 7th time. As per RBI News Keeping the repo rate 6.5% as in the previous financial year, they will not make any loans expensive and there will be no increase in EMI, giving borrowers big relief. Lenders was expecting interest rate to drop down in the wake of general elections in Maharashtra The meeting of monetary Committee was going on from april with the recent bank Governor Mr. Shaktikanta Das, he has informed about the decision taken in this meeting. This meeting is held every two months. As a repo rate are kept of home loan, car loans will also the same There was no change in interest rate even in the monetary policy meeting.The Six members in that meeting including Governor Mr. Shaktikanta Das, RBI Executive, Director Mr. Rajeev Ranjan, Deputy Governor Mr. Michael Devvrat Patra, Mr. Shashank Bhide, Miss. Ashima Goyal and Mr. Jayanta. R. Varma. 

Governor Mr. Shaktikanta Das said ” In Financial Year 2024-25 inflation rate during the year is 4.5%. and Financial Year 2023-24 inflation rate was 5.4% , that will remain low compared with the previous financial Year. The fuel component of the Consumer Price Index (CPI) has remained in deflation for six months and robust growth prospects provide the policy space to remain focused on inflation”

As per Governor Mr. Shaktikanta Das Sales of homes in the top seven cities have been exceptional over the past few quarters, Regardless of a steady increase in prices. The first quarter of 2024 witnessed a remarkable total of over 130,000 housing units sold in these seven cities, marking the highest quarterly sales in the last ten years. Average residential prices in these areas have surged significantly over the past year, with increases ranging from 10% to 32% in Q1 2024 compared to Q1 2023. Therefore, the relief offered by the RBI’s decision to keep the repo rate unchanged is fitting and well-received by home loan borrowers. Also he will suggest a refinancing process of moving your existing loan to a different lender that offers better terms, such as lower interest rates. He emphasizes the significance of making timely EMI payments to uphold a good credit score and to steer clear of penalties or late fees, which contributes to effective debt management.

DateRepo Rate
27 March 20204.4%
22 May 20204%
3 March 20224.4%
8 June 20224.9%
5 August 20225.4%
30 September 20225.9%
7 December 20226.25%
8 February 20236.5%

GDP Growth Rate remains 7% as per RBI News

RBI has kept GDP growth rate 7% for the current financial year 2024-25. It is lower than previous financial year 2023-24 is 7.6%. The main reason for that results is Demand from rural areas has started to increase strongly, continuous growth in manufacturing sectors, Sovereign Green bonds at the international financial center are allowed, India is the world’s largest recipient of remittances, Rupees stability. Governor Mr. Shaktikanta Das pointed difficulties in global trade and geopolitical tensions.

Demand from rural areas has started increase strongly

it is driven by increased access to technology and online services, improvements in infrastructure, or shifts in consumer preferences in rural areas.

Continuously growth in manufacturing sectors

Continuous growth in the manufacturing sector is indicative of a robust economy and evolving technological landscape. As industries embrace automation, data analytics, and advanced manufacturing techniques, they streamline processes, enhance efficiency, and improve product quality.

Sovereign Green bonds at the international financial center are allowed

This allowance of finance and sustainability underscores a growing awareness of environmental responsibility within the global financial system.

India is the world’s largest recipients of remittances

India holds the world’s largest recipient of remittances, a testament to the vast number of its citizens living and working abroad. Remittances play a crucial role in the Indian economy, contributing significantly to foreign exchange reserves and bolstering household incomes.

Rupees stability

The ability of the currency to maintain its value relative to other major currencies over time.

Cash can be deposits through UPI:

Currently through debit cards we can deposit cash. Cash withdrawal facility available through ATM or debit card, As on Now, cash can be deposited through UPI. This will facilitate the customers and make the cash handling process easier for the bank.

Know More Financial, Investement, Real Estate Investment- Money Mamla

In summary, the Reserve Bank of India (RBI) has maintained the repo rate at 6.5% for the seventh time, providing relief to borrowers with no increase in EMIs and expensive loans. Governor Shaktikanta Das highlighted the lower inflation rate for the financial year 2024-25, standing at 4.5%, compared to 5.4% in the previous year.Robust growth in housing sales and the manufacturing sector, the GDP growth rate has been set at 7%, reflecting global trade challenges and geopolitical tensions.

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