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RBI

RBI’s policy boosts digital payments security, offers relief for housing sector, say experts

Posted on 7 February 20257 February 2025 by BNW News

The Reserve Bank of India’s (RBI) latest monetary policy action of cutting the repo rate by 25 bps has garnered significant attention from industry leaders, highlighting its dual focus on enhancing digital payments security and providing a much-needed boost to the housing sector. T

Jose Thattil, CEO of Phi Commerce, emphasized the RBI’s commitment to advancing digital payments adoption and financial inclusion. He noted that while the growing digitization of financial services has fueled convenience, it has also heightened concerns over cyber threats and digital fraud. “The RBI’s plan to extend Additional Factor of Authentication (AFA) to international digital payments is a timely step to enhance transaction security,” Thattil said. He also welcomed the introduction of exclusive ‘bank.in’ and the forthcoming ‘fin.in’ domains, which aim to curb banking frauds by providing secure digital spaces for financial institutions.

Thattil further stressed the need for fintech firms, alongside banks and NBFCs, to proactively address evolving risks. “Strengthening cybersecurity, enhancing fraud detection, and ensuring operational resilience are crucial. Collaboration among regulators, financial institutions, and fintech players is key to creating a safer, more trusted digital payments landscape,” he added.

In the real estate sector, Amit Bhagat, Co-Founder, CEO, and MD of ASK Property Fund, highlighted the RBI’s rate cut as a crucial move to rejuvenate the affordable and lower mid-income housing segments. “Home sales in these segments have been affected by declining affordability due to rising prices and elevated interest rates,” Bhagat explained. “A rate cut was definitely the need of the hour to uplift sentiment and define a positive direction for the near future.”

Bhagat believes that the RBI’s monetary policy, combined with the government’s recent budget initiatives—including tax benefits across slabs, provisions for self-occupied houses, and the SWAMIH Fund 2—will help sustain housing demand and drive continued sales growth. “These measures collectively aim to maintain momentum in the housing market and support long-term growth,” he concluded.

The RBI’s latest policy reflects a balanced approach, addressing both the technological challenges of a digitized economy and the financial pressures in the housing sector, signaling a forward-looking stance in India’s economic landscape.

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