Highlights of RBI’s 1st Bi-Monthly Monetary Policy of FY27

Current Context: On 8 April 2026, the Reserve Bank of India (RBI) announced its first bi‑monthly monetary policy for FY27.

• The Repo Rate (Repurchase Rate) was kept unchanged at 5.25%, with SDF (Standing Deposit Facility) at 5.00% and MSF (Marginal Standing Facility) & Bank Rate at 5.50%.
• The monetary policy stance remains neutral, showing caution but flexibility amid global uncertainties.
• GDP (Gross Domestic Product) growth for FY27 is projected at 6.9%, moderating from 7.6% in FY26.
• CPI (Consumer Price Index) inflation is estimated at 4.6%, with risks from oil price volatility and West Asia tensions.
• RBI highlighted limited policy impact on supply‑driven shocks, focusing instead on balancing growth and price stability while pausing the easing cycle.

Question:

Q.1 According to the Reserve Bank of India (RBI), what is the SDF (Standing Deposit Facility) rate?
a) 4.75%
b) 5.00%
c) 5.25%
d) 5.50%

Answer: b) The Standing Deposit Facility (SDF) rate is 5.00%, used by RBI to absorb liquidity without collateral.