RBI News: Ever since the war between Iran and the US, the country’s economy had gone haywire. The impact of inflation also reached the pockets of the common people. No sector was spared from the brunt of this inflation. Even the functioning of the banking system has been greatly affected. Due to this, recently RBI has taken a step so that the functioning of the banking system continues smoothly.

RBI removed the cash shortage
In fact, recently RBI i.e. Reserve Bank of India has injected some cash to overcome the shortage of cash in the banking system. RBI on Tuesday infused temporary cash of more than Rs 1.41 lakh crore into the banking system through the 7-day Variable Rate Repo (VRR) auction. With this, the functioning of the bank will continue to run smoothly. At the same time, the public will also benefit from this.

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Cash shortage in banks
According to news agency IANS, in recent times, due to GST payment, a large amount of money went out of the banks, due to which there was a shortage of cash in the banking system. Due to which pressure on short-term interest rates started increasing. In such a situation, RBI had to intervene and provide funds to the banks at the rate of 5.26%, so that they do not face shortage of money and the functioning of the banks continues smoothly.

Let us tell you that when there is less cash in the banking system due to tax payment or other reasons, RBI provides money to the banks temporarily through measures like repo auction. At the same time, to increase liquidity for the long term, the central bank also adopts measures like buying government bonds and dollar-rupee swap. Its purpose is to ensure that due to lack of money in the market, interest rates do not increase suddenly and the pace of the economy is not affected.

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RBI News: The Monetary Policy Committee (MPC) meeting of the Reserve Bank of India (RBI) is going to be held on June 5, 2026. After this meeting, the RBI Governor is going to announce this policy. At present, everyone’s eyes are on this meeting of RBI. Meanwhile, now the statement of the Chairman of the country’s largest bank SBI has come to light. In his statement, CS Shetty has said that he wants RBI not to make any changes in the repo rate now. Let us know why Shatti said this.

What did the SBI Chairman say?
In fact, recently SBI Chairman CS Shetty has talked to Money Control. During this time, he has demanded that RBI should not change the interest rates. Shetty said, ‘RBI has estimated 6.9 percent growth, but according to SBI’s own assessment, the growth may be 6.6 percent. Inflation may be 4.6 to 4.7 percent. This indicates that it would not be right to take any decision regarding interest rates right now.

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According to Shetty, at present there is a balance between inflation and economic growth in the country. In such a situation, if RBI keeps the interest rates as they are then it will provide stability to the economy and the pace of development will also be maintained. He said that the market is also expecting that RBI will not make any change in the repo rate this time. According to him, at present, the right step would be to “rate pause” i.e. keeping the interest rates stable.

What will be the impact on common people?
If RBI does not make any change in interest rates, it may affect the lives of common people. As:

• There will be less possibility of immediate change in EMI of home loan, auto loan and personal loan.
• There will be no major change in the deposit (FD) rates of banks.
• There will be a stable environment for business and investment.
• Banks will get time to understand the impact of the policy changes made earlier.

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Why are eyes fixed on RBI’s decision?
Let us tell you that the MPC meeting of RBI is being held between 3rd to 5th June. In this meeting, the central bank reviews many issues like inflation, economic growth, global situation and the position of the rupee. After this, a decision is taken on the repo rate, which affects the loan and deposit rates of banks.

RBI MPC Meeting: This time the Reserve Bank of India did not make any change in the repo rate and kept it at 5.25 percent. The Reserve Bank Governor announced this. The meeting of the six-member Monetary Policy Committee (MPC) under his chairmanship started on Monday. This meeting of RBI MPC took place at a time when tensions in West Asia are at their peak, crude oil prices are skyrocketing and the rupee has depreciated. In such a situation, it is expected that this time RBI will maintain the repo rate at 5.25 percent.

RBI has cut the rates by a total of 125 basis points from February 2025 till now. For the first time since 2019, the Reserve Bank brought down the rates so rapidly. In the last meeting held in February 2026, the Reserve Bank had kept the rates stable so that the earlier cuts could be assessed. Earlier in December 2025, the repo rate was reduced by 25 basis points.

What will be the GDP growth?

RBI was hopeful that economic activity would remain good in FY27. The central bank has increased the GDP growth estimate for Q1FY27 to 6.9 percent from 6.7 percent, while the GDP growth estimate for Q2FY27 has been increased to 7 percent from the earlier 6.8 percent. In the February policy, the MPC also raised the inflation forecast for Q1FY27 to 4.0 percent and the inflation forecast for Q2FY27 to 4.2 percent. RBI Governor Sanjay Malhotra also said during this time that India remains an attractive destination for greenfield FDI projects.

What is repo rate?

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RBI MPC Meeting April 2026: The meeting of the new Monetary Policy Committee (MPC) of the Reserve Bank of India is going to start tomorrow i.e. from 6th April. On which people are keeping a special eye. In view of the current global situation, especially the increasing tension in West Asia, it is expected that RBI will not make any major changes in the repo rate at present.

The report of State Bank of India also indicates that at this time the central bank can adopt a cautious stance and keep the interest rates stable. Let us know about this…

What can be the decision of RBI on repo rate?

Considering the current situation, RBI may avoid changing the repo rate this time. According to SBI research, the rates may remain stable at around 5.25 percent. The main reason for this is the ongoing tension in the Middle East.

Due to which there is an atmosphere of uncertainty in the global markets. Especially due to the ongoing blockage in the Strait of Hormuz, crude oil prices have remained above $100 per barrel.

impact on indian economy

The effect of these conditions created at the global level is also visible on India’s economy. Indian currency rupee is continuously weakening. The rupee had reached its lowest level ever. In such a situation, RBI can distance itself from changing the repo rate.

The road ahead is difficult due to inflation

There seems to be little possibility of inflation pressure reducing in the coming months. According to research by State Bank of India, CPI inflation may remain above 4.5 percent for the next three quarters.

Along with this, the effect of possible Super El Nino can also increase the prices further. Due to which the situation can become more challenging. In such a situation, there is little hope of change in the repo rate.

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GDP Growth Forecast: Reserve Bank of India (RBI) Governor Sanjay Malhotra has announced the reduction in repo rate on Friday, December 5. The Monetary Policy Committee (MPC) has decided to reduce the repo rate by 25 basis points to 5.25 percent. He also estimated that the GDP growth for the current financial year 2026 will be 7.3 percent. GDP growth has been increased from 6.8 percent to 7.3 percent. The inflation estimate for the third quarter of the financial year 2025-26 has been increased from 6.4 percent to 7 percent and for the fourth quarter from 6.2 percent to 6.5 percent.

RBI Governor gave information

RBI Governor informed that the domestic economic activities of the country are going on at a good pace. Demand in rural areas remains strong, while demand in cities is gradually improving. In the matter of repo rate, the Monetary Policy Committee has unanimously decided to cut interest rates. Under this, a reduction of 25 basis points has been made. Giving further information, Sanjay Malhotra said that before taking the decision of rate cut, MPC studied the changing macro economic situation and future possibilities in detail and on this basis all the members have taken the decision of rate cut.

Mentioned about GST reform and strong consumption

According to the RBI Governor, the country’s second quarter GDP growth accelerated due to strong consumption and reforms in GST. He said that retail inflation has come down to 0.25 percent in October 2025, which is the lowest level till date.

There was no change in the repo rate in the last monetary policy meeting on October 1. The committee had taken the decision to keep the repo rate stable at 5.5 percent.

How much did the repo rate decrease this year?

RBI had reduced the repo rate by a total of 100 basis points between February and June this year. That means interest rates were reduced from 6.5 percent to 5.5 percent. After this, no changes were made in the policy meetings of August and October and it was decided to keep the repo rate stable.

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RBI MPC Meeting 2025: The review meeting of the Monetary Policy Committee of the Reserve Bank of India (RBI) is starting today i.e. Wednesday, December 3. This meeting will continue till December 5. These meetings are being held under the chairmanship of RBI Governor Sanjay Malhotra.

In which decision regarding repo rate will be taken. The results will be announced by the committee on December 5. According to a report published in Hindustan News, the report of SBI Research has expressed hope that this time there does not seem to be any situation regarding rate cut…..

SBI Research Report

According to a report by SBI Research, till a few days ago it was being estimated that RBI may make a slight cut in the repo rate by 25 basis points. But looking at the current situation, this hope is no longer visible.

According to the report, GDP growth has been strong in the July-September quarter and considering the current economic situation, there is no hope of any change in the repo rate. Besides, it was also informed in this report that many economies of the world are keeping their repo rates in a stable state. That means it is not making any change in the repo rate.

Repo rate may be cut

According to the report of credit rating company CareEdge, the country’s inflation has reached a ten-year low of 0.3 percent in the month of October, which is much less than the set target of 4 percent. In such a situation, it can be expected that there will be a reduction in interest rates.

The report said that in view of the decline in inflation and strong GDP growth, a 0.25 percent repo cut can be announced by the RBI.

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Repo Rate Cut Expectation: The Reserve Bank of India (RBI) is likely to cut the repo rate in the Monetary Policy Committee meeting to be held in the month of December. On Thursday, economists informed that the inflation rate has decreased in the month of October. Retail inflation has reached a record low of 0.25 percent in October, which was 1.44 percent in the month of September.

According to experts, this is the lowest inflation rate recorded in the Consumer Price Index (CPI) series. Overall, inflation has come down because, on one hand, the prices of food items have come down and on the other hand, the prices of other essential goods are also increasing at a slow pace.

What information did CRISIL give?

According to the information given by CRISIL, due to lower than expected food inflation rate, low global crude oil prices and GST reform, retail inflation rate may average 2.5 percent in this financial year. Which is much less than last year’s figure of 4.6 percent. Also, the benefits of GST reform are reaching the common people. However, the effect of GST was not completely transferred in the month of October. The effect of which will be seen in the month of November.

Also giving further information, Crisil said that the retail inflation rate in the month of November is 0.9 percent, it is likely to decline further due to GST changes. Also, the core inflation rate may remain less than 2 percent in the financial year 2026.

There was no change in repo rate in October

The Monetary Policy Committee (MPC) headed by RBI Governor Sanjay Malhotra had decided in October not to make any change in the repo rate. It was decided to keep the repo rate at 5.5 percent. Earlier, even in the month of August, there was no change in the repo rate. The impact of the heavy tariffs imposed by America was visible in the committee’s decision.

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IMF on India’s GDP: At a time when the world’s economic growth is slowing down, India’s GDP is growing strongly. This has been approved by Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF). He said that at a time when many big economies of the world are facing challenges, India is playing an important role in global economic development.

During the annual meeting of IMF and World Bank held in Washington, Georgieva said that India’s strong economic policies and reformative steps have made it one of the fastest growing economies of the world.

The world recognized India’s iron power

Georgieva said that before the Corona epidemic, the global economy was expected to grow at the rate of 3.7 percent, but now it is limited to about 3 percent. He said that the last few years have seen a huge change in the global economic pace – while China’s economy slowed down, India’s has accelerated its pace. He further said that India has proved the doubters wrong on the basis of strong reforms and consistent policy efforts.

What does the latest estimate of IMF say?

According to the latest IMF estimates, India will remain the world’s fastest growing economy in the coming years. The organization says that India’s GDP can grow at the rate of 6.4 percent in the financial years 2025 and 2026.

IMF has increased India’s growth rate forecast. Earlier in the report released in April 2025, India’s growth rate was said to be 6.2 percent in 2025 and 6.3 percent in 2026 respectively. In comparison, China’s economy is projected to grow by 4.8 percent in 2025 and 4.2 percent in 2026.

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Rbi on indian economy: The Reserve Bank of India (RBI) has decided to maintain the repo rate at 5.5 percent, keeping in mind the existing domestic and global conditions. Governor Sanjay Malhotra announced this at a press conference after a three -day Monetary Policy Committee (MPC) meeting on Wednesday. He informed that the attitude of monetary policy has been kept neutral, which means that the central bank will maintain flexibility in rates according to the changing economic situation. Let us know ten big things of RBI Governor Sanjay Malhotra-

1-RBI, while presenting the economic picture of the country, has increased the estimate of GDP growth from 6.5 percent to 6.8 percent. This is definitely good news for the country, because since the American high tariff, the economic front is facing challenges. While the estimate of retail inflation has been reduced from 3.1 percent to 2.6 percent. This is the second consecutive time when there is no change in the repo rate.

2- Governor Malhotra said that due to the repo rate being stable, there is no possibility of change in interest rates of housing, vehicles and other retail loans at the moment.

3-He also informed that from February to June this year, RBI has already reduced the repo rate by 1 percent, due to which there has been a decrease of 0.58 percent in the borrowing cost of new loans.

The 4-RBI further stated that India’s foreign exchange reserves have reached $ 700.2 billion, which is sufficient for imports of about 11 months. Also, in the second quarter of the current financial year, domestic economic activities are expected to be raised.

5-Governor admitted that challenges remain globally, but better monsoon, GST rate cuts and other policy measures will lead to inflation and economic growth will gain momentum.

6-Central bank believes that low inflation and monetary softening will lead to both investment and consumption.

7-Now it is clear that the RBI is in “Weight and Watch” mode-that is, at the moment the direction and global situation of the economy will be monitored with stable rates.

Stock Market News: The day of 30 September 2025 for the Indian stock market was full of ups and downs. After showing strength in early trade, the market went in the red mark by noon. At the end of the trading, the Sensex closed down to 97.32 points (0.12%), while the Nifty remained 23.80 points (0.10%) below.

Sensex Top Gainer: Ultracemco, Adani Ports, Tata Motors, BEL, Bajaj Finance
Sensex Top Loser: ITC, Bharti Airtel, Trent, Titan

4 major reasons for market collapse

1. Selling of foreign investors

So far in September, Foreign Investors (FIIs) have withdrawn Rs 32,900 crore from the Indian stock market. Constant selling and lack of any major positive trigger put pressure on the market. According to Ajit Mishra of Religare Broking, the Nifty is getting strong support at 24,400-24,500 levels, but FII selling and RBI’s policy before the policy is stopping the speed of the market.

2. RBI’s monetary policy awaits

The meeting of RBI’s Monetary Policy Committee (MPC) is going on from September 29 and the verdict will come on 1 October. Investors are cautious and avoiding new investment. Experts believe that RBI will not change the repo rates at the moment.

3. India Vix boom

India VIX (volatility index) rose 3% to 11.73, which increased the atmosphere of market volatility and uncertainty. This was the reason that the trust of investors weakened.

4. Tariff and H-1B visa dispute

There are no positive signs on tariff talks with America and the H-1B visa issue is also stuck. It has directly affected stocks like IT sector and especially TCS. The company’s shares are continuously falling down. Overall, foreign investors’ selling, waiting for RBI policy, increased instability and business disputes related to the US weakened the Indian stock market.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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