RBI likely to maintain status quo in upcoming monetary policy review meeting: SBI Chairman

New Delhi: State Bank of India (SBI) Chairman Dinesh Khara on Wednesday said he expects the Reserve Bank of India (RBI) to maintain status quo in the monetary policy review meeting next month.

"When it comes to MPC, there are multiple data points to look into. The broad data of course is inflation... what we have seen in last few months, it could be perceived that it is trending down.

"As a bank, we don't expect any cut. May be a status quo is something which we expect," he said at an event organised by industry body CII here.

The next meeting of the RBI's Monetary Policy Committee (MPC) is scheduled to be from August 8-10.

In its policy review meeting last month, the RBI left the key interest rate unchanged for a second straight time but signalled that it wants to see inflation moderate more.

Currently, the repo rate is 6.5 percent

Asked about private capital expenditure (capex), Khara said robust retail demand drives the need for investment in capacity expansion by the corporate sector.

Consumption is picking up and and corporate sector has started talking about capex, he said.

"We are seeing right traction and in the right direction as far as private capex is concerned," he said.

With regard to financial inclusion, he said, it has emerged as a key foundation for socio-economic empowerment and a critical enabler for inclusive and holistic growth of the people.

The government has rightly recognised the potential of financial inclusion and spearheaded several notable initiatives and policies to include the unbanked in the financial ecosystem, he said.

He noted that the introduction of the game-changing Pradhan Mantri Jan Dhan Yojana in 2014, social security schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, and Atal Pension Yojana, and UPI, among others, have contributed immensely towards financial inclusion.

Another significant development in the financial services industry, he said was the rise of the new-age fintechs.

They are re-defining the way in which financial transactions are carried out across the broad range of financial services. It is done by leveraging innovative technologies such as Artificial Intelligence, Machine Learning, Block Chain, Data and Analytics, he said.

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