<span style="color: #222222;">Banking, Industry and finance experts have have said that the RBI's hike in policy rate is on expected lines. State Bank of India Chairman Dinesh Khara said the policy statement is a comprehensive assessment of uncertainties and is an affirmation of coordinated policy action by the Government and RBI to thwart the dangers of inflation.<br />''  <br />'' He added that enabling more headroom for Urban and Rural Cooperative Banks for financing the housing sector will bring about a level playing field in the cooperative banking space while linking Rupay credit cards to UPI will add more avenues and convenience for customers.<br />'' <br />'' Indian Bank's MD and CEO Shanti Lal Jain said a hike of 50 bps is likely to curb inflationary pressures coupled with a series of measures by the Centre like reduction in excise duty on petrol and diesel. He said relaxations in cooperative banks will help in financial inclusion.<br />'' <br />'' Mr Jain added that measures like enhancing the limit of e-mandate and linking UPI to Credit Cards will help in digital penetration.<br />'' <br />'' On a similar note, Cluster CEO, India and South Asia markets of Standard Chartered Bank, Zarin Daruwala said the ingenious move of linking credit cards to UPI will reduce transaction costs and increase acceptability, thereby further augmenting India's world class payments systems.<br />'' <br />'' She added that allowing rural co-operative banks to lend to the residential housing sector as well as hiking home loan lending limits for all cooperative banks, will be a tailwind for affordable housing.<br />'' <br />'' Confederation of Indian Industry, CII President, Sanjiv Bajaj said that RBI's concern on containing inflation is appreciated, given that it is impinging on the margins of businesses and also hurting consumer demand.<br />'' <br />'' IMC Chamber of Commerce and Industry, President Juzar Khorakiwala too opined that the rate hike was on expected lines as the lingering Ukraine war continues to cause upward inflationary pressure on food, crude and commodities.<br />'' <br />'' The central bank yesterday announced increase in the repo rate by 50 basis points to 4.90 percent in its half-yearly monetary policy. the rates were increased by 40 basis points at an off-cycle meeting of the Monetary Policy Committee.<br />'' <br />'' The central bank also forecast 6.7 percent inflation, while the real GDP growth rate is pegged at 7.2 percent.<br />'' <br />'' The Standing Deposit Facility and Marginal Standing Facility rates were also raised by 50 basis points. Standing Deposit Facility rate is now 4.65 percent, while Marginal Standing Facility rate is at 5.15 per cent.<br />'' <br />'' RBI also proposed to allow linking of credit cards to the Unified Payments Interface. It said, the facility would initially be enabled for Rupay Credit Cards, that too after the required system development is complete.<br />'' <br />'' In another important announcement, the Reserve Bank has enhanced the limit for e-mandate-based recurring payments from five thousand rupees to fifteen thousand rupees.<br />'' <br />'' The central bank also increased the existing limits on individual housing loans that can be extended by cooperative banks. Limits for Primary (Urban) Co-operative Banks – UCBs have been doubled for Tier I and Tier II cities.<br />'' <br />'' For Rural Cooperative Banks with assessed net worth less than 100 crore rupees, the limit has been increased from 20 to 50 lakhs while for the remaining RCBs, the limit has been enhanced from 30 lakh to 75 lakh rupees.<br />'' <br />'' Further, considering the growing need for affordable housing, the apex bank has decided to allow State Co-operative Banks and District Central Co-operative Banks to extend finance to Commercial Real Estate – Residential Housing.<br />''<br />''The apex bank has also decided to permit UCBs to extend doorstep banking services to their customers on par with scheduled commercial banks.</span>