RBI Monetary Policy Highlights: Key Rates & Projections

Mumbai, Oct 1 (PTI) Following are the highlights of the bi-monthly monetary policy announced by Reserve Bank Governor Sanjay Malhotra on Wednesday:


* Key interest rate (repo) unchanged at 5.5 pc;
* GDP growth projection for FY26 raised to 6.8 pc from 6.5 pc;
* Inflation estimate lowered to 2.6 pc in FY26 from 3.1 pc;
* GST reforms to have a sobering impact on inflation, growth;
* US tariffs to impact exports;
* Robust services exports, strong remittance to keep CAD sustainable;

* Forex reserves stood at USD 700.2 bn, sufficient for 11 months of imports;
* RBI keeping close watch on rupee, to take appropriate steps, as warranted;
* Bank credit growth, though lower than last year, continues to support economic activity;
* Revised Basel III capital adequacy norms effective for banks from April 1, 2027;
* RBI to provide enabling framework for banks to finance acquisitions;
* RBI proposes to enhance limits for lending against shares from Rs 20 lakh to Rs 1 crore;
* Lending for IPO financing to be raised from Rs 10 lakh to Rs 25 lakh per person;
* Proposes further simplifying foreign exchange management norms;
* Banks to lend in rupees to non-residents from Bhutan, Nepal and Sri Lanka for cross border trade;
* Next meeting of the MPC scheduled during December 3 to 5.