RBI’s 4th Bi-monthly Monetary Policy FY2025-26

Current Context: On 1 Oct 2025, the Reserve Bank of India (RBI) kept the Repo Rate (Repurchase Rate) unchanged at 5.50% with a neutral stance.

• Other rates: SDF (Standing Deposit Facility) – 5.25%, MSF (Marginal Standing Facility) & Bank Rate – 5.75%, CRR (Cash Reserve Ratio) – 3.50%, SLR (Statutory Liquidity Ratio) – 18%.
• GDP (Gross Domestic Product) growth for FY26 was revised upward to 6.8%, while CPI (Consumer Price Index) inflation was cut to 2.6%.
• Credit flow measures: Higher limits for loan against shares, simplified rules for acquisition financing, and reduced infra financing costs for NBFCs (Non‑Banking Financial Companies).
• Banking reforms: New DICGC (Deposit Insurance and Credit Guarantee Corporation) risk‑based premium model, free digital banking under BSBDA (Basic Savings Bank Deposit Accounts), and wider coverage under RB‑IOS (RBI Integrated Ombudsman Scheme).
• Rupee internationalisation: Expansion of SRVAs (Special Rupee Vostro Accounts), permission for rupee loans abroad, and a new reference rate framework.

Question:

Q.1 As per RBI’s 4th Bi-monthly Monetary Policy FY2025-26, what was the Repo Rate (Repurchase Rate) kept by the Reserve Bank of India (RBI)?
a) 5.25%
b) 6.00%
c) 5.75%
d) 5.50%

Answer: d) The Reserve Bank of India (RBI) kept the Repo Rate (Repurchase Rate) unchanged at 5.50% with a neutral stance.