“We believed that if left unchecked, these vulnerabilities could escalate into a bigger problem. Therefore, we decided to act preemptively to slow down credit growth,” Das explained. He expressed satisfaction with the outcome, noting a deceleration in unsecured lending growth as intended.

Announcing the second bi-monthly monetary policy for the current financial year, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 per cent.

"The meeting entailed comprehensive discussions on strategies to broaden and deepen the adoption and usage of UPI. Valuable inputs and suggestions were exchanged among stakeholders," the statement noted.

“We continue to see banking channels being used by certain persons or entities to fund activities on unauthorised FX trading platforms. This warrants enhanced vigilance by the banks,” Das said at the FIMMDA-PDAI Annual Conference in Barcelona on Monday.

Optimism prevails, with forecasts indicating strong growth in fiscal year 2024. Finance Minister Nirmala Sitharaman anticipates robust growth in the fourth quarter, potentially propelling GDP growth for the entire fiscal year to 8% or higher.

Modi reminisced about the challenges faced by the banking system during the 80-year celebration of RBI in 2014, including issues like NPA and stability. From those trials, he acknowledged the remarkable transformation that has elevated the Indian banking system to global prominence, attributing it to the clarity of policy, intent, and decisions. "Where intentions are right, results follow suit," PM Modi said.

In a move aimed at providing greater convenience to taxpayers, the Reserve Bank of India (RBI) has announced that its offices dealing with government business and designated branches of agency banks will remain open during normal working hours on March 30 and 31, 2024. This decision comes as part of special measures for the current financial year, particularly in light of the annual closing of government accounts.

Das attributed this buoyancy to multiple factors, including improving rural demand, which has surged compared to the previous year, alongside continued strength in urban demand. He emphasized the resilience of investment activity, citing both government and private sector capex as significant contributors.

Currently, internet banking transactions, such as income tax payments, insurance premiums, and e-commerce transactions, processed through Payment Aggregators lack interoperability, resulting in delays and settlement risks for merchants. The introduction of this new system is expected to address these challenges and enhance user confidence in digital payments.

"As markets are front-running central banks in anticipation of policy pivots, any premature move may undermine the success achieved so far," the governor said, as per the minutes. He argued that price and financial stability were essential to sustain a long haul of high growth, and the monetary policy's objective was to stay focused on achieving the 4 per cent inflation target on a durable basis, keeping in mind the objective of growth.

The gathering addressed critical issues pertaining to macro financial stability and India's readiness to confront them effectively. Among the key deliberations were ongoing inter-regulatory matters aimed at bolstering the Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC) to solidify its position as a global financial hub, facilitating foreign capital inflow and financial services for the domestic economy.

Suresh Ganapathy, an analyst at Macquarie, voiced concerns over Paytm's ability to retain customers and maintain its business model amidst regulatory headwinds. The brokerage highlighted the potential fallout with lending partners, citing indications that some partners are reconsidering their relationship with Paytm, which could significantly dent its lending business revenues.