The Reserve Bank of India has kept the policy repo rate unchanged at 5.25 per cent in its sixth and final bi-monthly monetary policy review for the current fiscal. The Monetary Policy Committee took the decision unanimously. As a result, other policy rates also remain unchanged. The move comes after a 25 basis points cut in December 2025.
Inflation Outlook Revised
The RBI has slightly raised its consumer price index inflation forecast for the first quarter of 2026-27 to 4.0 per cent and for the second quarter to 4.2 per cent. In the previous projection, inflation was estimated at 3.9 per cent and 4.0 per cent, respectively. The central bank said the upward revision is mainly due to higher prices of precious metals, which are estimated to add 60-70 basis points to inflation.
Growth Projection Strengthened
The RBI has also revised its real GDP growth forecast upwards. Growth for the first quarter of 2026-27 is now projected at 6.9 per cent, while the second quarter is estimated at 7.0 per cent. In the previous policy review, the projections were 6.7 per cent and 6.8 per cent. The revision reflects a more resilient domestic growth outlook.
Digital Payment Safety Measures
The RBI has proposed draft guidelines to limit customer liability in unauthorised electronic banking transactions. It is planning a framework to compensate customers up to ₹25,000 for losses in small-value fraudulent transactions. The central bank will also release a discussion paper on strengthening digital payment safety, including lagged credits and additional authentication for specific user groups such as senior citizens.
Banking Conduct and Lending Rules
The RBI will issue draft guidelines on mis-selling, loan recovery, and the conduct of recovery agents. It plans to provide comprehensive instructions to regulated entities on advertising, marketing, and sales of financial products and services. The central bank will also review and harmonise existing conduct-related rules on recovery practices. Revised draft guidelines are also due for the Lead Bank Scheme, Kisan Credit Card Scheme, and the Business Correspondent Model.
Last Modified: April 27, 2026