RBI Holds Repo Rate At 5.5%: Key Highlights From The Latest Policy Meet

The Reserve Bank of India (RBI), under Governor Sanjay Malhotra, has announced that the repo rate will remain unchanged at 5.5%.

The Monetary Policy Committee (MPC) unanimously agreed to maintain a ‘neutral’ policy stance after a comprehensive assessment of macroeconomic trends, aiming to balance inflation control with economic growth.

Governor Malhotra clarified that a neutral stance neither injects nor withdraws liquidity, helping manage inflation without stifling economic momentum.

Inflation Under Watch, Core Prices Stable

While headline inflation has moderated, food prices — especially vegetables — remain volatile.

However, core inflation has held steady at around 4%. The RBI has projected Consumer Price Index (CPI) inflation at 3.1% for the financial year 2025–26, signalling confidence in price stability despite global uncertainty.

GDP Growth Forecast Retained at 6.5%

The central bank retained India’s GDP growth forecast at 6.5% for FY 2025–26.

Governor Malhotra expressed optimism about economic momentum, citing a favourable monsoon and the approaching festive season as key drivers of domestic demand.

He emphasised India’s resilience amid global economic fragility and reaffirmed the RBI’s calibrated approach.

Steps to Simplify Claims by Legal Heirs

In a customer-centric move, the RBI has introduced new guidelines to make it easier for legal heirs to claim funds from the bank accounts of deceased customers.

The central bank aims to streamline the claim settlement process across banks, reducing paperwork and delays for families.

Jan Dhan Re-KYC Camps Extended till September 30

The RBI has extended the deadline for Jan Dhan account holders to complete their re-KYC (Know Your Customer) process.

Re-KYC camps will be held across the country until September 30, making it easier for financially weaker sections to maintain access to their banking services.

US Tariffs Unlikely to Impact Indian Economy Significantly

Addressing global trade developments, Governor Malhotra downplayed concerns over recent US tariff hikes, stating they are unlikely to have a major impact on India’s economy.

He reiterated the strength of domestic fundamentals and the country’s growing self-reliance.

Also Read: RBI Holds Repo Rate At 5.5%; Maintains Neutral Stance As Food Prices Remain Volatile