RBI’s re-KYC drive under Jan Dhan will have its implications for FI & rural banking

Mumbai, Aug 06

RBI’s Governor Sanjay Malhotra, in his address post MPC meeting on August 06 said that the apex bank has addressed re-KYC drive under Jan Dhan and that it will have its implications for financial inclusion and rural banking.

The RBI Governor, while announcing the Monetary Policy Committee's decision, emphasized the need for re-KYC under the Jan Dhan scheme, as it completes a decade, highlighting a continued push towards deepening financial inclusion and improving last-mile service delivery. The Governor kept the Repo rate unchanged at 5.5 per cent, maintaining the GDP growth forecast at 6.5 per cent for FY25.

Talking to Bizz Buzz, Shikhar Aggarwal, Chairman, BLS E-Services says, “RBI’s positive policy stance reflects the resilient Rural consumption, steady monsoon boosting agriculture activity and Govt capex supporting economic activity, along with healthy profitability and credit-deposit ratio of Banks & NBFCs.

The RBI's decision to hold the repo rate steady at 5.5 per cent reflects a cautious approach to balance growth and inflation. While a rate cut could have provided additional stimulus, the unchanged GDP growth forecast of 6.5 per cent for FY26 suggests a stable economic outlook.

Anantharam Varayur, Co-Founder Manasum Senior Living says, “For the senior living housing sector, this stability in interest rates could be beneficial in the long run, as it may keep borrowing costs manageable for potential homebuyers.”

However, the sector's growth will likely depend on other factors such as demand, affordability, and government policies supporting elderly care. Overall, the RBI's neutral stance indicates a wait-and-watch approach, and we expect the sector to adapt to the current economic environment while exploring opportunities for growth and innovation.

EoM.