Any further changes to the key policy rate will depend on inflation developments, as well as on whether or not risks to price stability materialize. The Board sees reasons for launching a monetary easing cycle, as risks of inflation decrease steadily, and inflation returns to its target, along the trajectory outlined in the central bank’s new macroeconomic forecast.
Against this background, the Policy had stated that the RBI would implement policies to encourage the banks which provide extensive services while disincentivising those which were not responsive to the banking needs of the community, including the underprivileged.