Mumbai, May 30 (Agency)
The country’s growth momentum will be sustained in 2023-24 on the back of strong macroeconomic policies and softening commodity prices. The Reserve Bank of India has expressed this possibility in its annual report released on Tuesday. The central bank said that inflation is also expected to come down in the current financial year. However, the report also noted that there are downside risks to growth if financial market volatility is triggered by slower global growth, geopolitical tensions and stress in the global financial system. Foreign portfolio investment (FPI) flows may remain volatile as global uncertainties persist. The central bank said good festive demand and the government’s thrust on capital expenditure supported the growth. The report states that the country’s real GDP is expected to grow at a rate of 7 per cent in 2022-23.
New payment system will work even in war-disaster
The Reserve Bank of India is preparing a payment system that will work in any situation. The system will be useful for important transactions during catastrophic events like natural calamities and war. According to the central bank, the proposed ‘light weight and portable payment system’ will be different from traditional technologies and can be operated from anywhere by a small number of employees. Existing systems like RTGS (Real Time Gross Settlement), NEFT (National Electronic Funds Transfer) and UPI (Unified Payments Interface) are dependent on advanced IT infrastructure and complex wiring networks for large volume payments. In catastrophic events such as natural disasters and war, these systems may shut down temporarily. Hence, it is prudent to be prepared to face such extreme situations.