Hyderabad, June 9 (Agency) The RBI has decided to come out with a regulatory framework for permitting First Loss Default Guarantee (FLDG) arrangements in digital lending to promote more transparency and discipline in such transactions, Atul Kumar Goel, MD and CEO of Punjab National Bank (PNB) said on Thursday. Similarly, proposing the framework for widening the scope of resolution of stressed assets indicate that RBI is right on the track of instilling harmonization across Regulated Entities, Goel said.In a statement while reacting over announcement of Monetary policy by the RBI on Thursday, Goel said that RBI has kept the rates and stance unchanged in line with the market expectations in view of easing retail inflation and anticipation of a further decline. Maintaining the GDP growth projection for FY’24 at 6.5 percent reflects that RBI remains sanguine about the economic growth projections, he said.
Reduction of the Inflation projection for FY’24 also indicates optimism, he said, adding the RBI’s announcement on allowing Scheduled Commercial Banks to set their own borrowing limits has given much required flexibility to Banks. In another statement, Madan Sabnavis, Chief Economist, Bank of Baroda, said “The credit policy was more or less on expected lines. The RBI has indicated two things. The first is that while GDP growth will be 6.5 percent for the year, there will be a tendency for the growth rate to keep declining progressively across the quarters. The other is that inflation will be 5.1 percent, though will be lower at 4.6 percent in Q1. Subsequently it will be increasing progressively in the next two quarters to 5.4 percent in Q3. This indicates that it looks unlikely that there will be a rate cut until Q4,” the economist said.