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The Reserve Bank of India (RBI) today, December 6, announced its fifth bi-monthly monetary policy for FY2025. The six-member Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, decided to maintain the policy by a majority of 4:2. The benchmark repo rate remained unchanged at 6.5 percent for the 11th consecutive session and the monetary policy stance remained “neutral” with a clear focus on maintaining stable inflation. Achieve your goals while supporting your growth. Additionally, the interest rate setting committee reduced the cash reserve ratio (CRR) by 50 basis points (bps) to 4%. Below are some highlights.
Policy measures:
The repo interest rate remained unchanged at 6.5%.
In "neutrality", the political position does not change
The SDF interest rate did not change, at 6.25%.
The MSF rate did not change, at 6.75%.
The bank's interest rate remained unchanged at 6.75%.
MPC members voted with a 4:2 majority.
CRR fell 4% to 50 basis points
The CRR has been reduced to ₹1.16 lakh across the banking system in two tranches.
GDP growth estimate:
The GDP growth estimate for FY25 has been cut to 6.6% from 7.2% earlier. Quarterly GDP growth estimates –
FY25: Decreased from 7.2% to 6.6%.
Q3 FY25: Decreases to 6.8% from 7.4%.
FY2025 Q4: Decreases from 7.4% to 7.2%.
Q1 2026: Decreases from 7.3% to 6.9%.
FY2Q26: 7.3%
Inflation forecast based on the consumer price index:
The CPI inflation target for FY25 was raised from 4.5% to 4.8%. Quarterly inflation forecast –
FY25: Increased from 4.5% to 4.8%.
Q3 FY25: growth from 4.8% to 5.7%.
IV of 2025 quarter: increase from 4.2% to 4.5%.
Q1 2026: increase from 4.3% to 4.6%.
2 square meters FY26: 4%
Additional Measures:
The FX Retail platform will be integrated with NPCI's Bharat Connect platform.
Introducing the Safe Overnight Rupee Rate (SORR), a benchmark based on safe money markets
The maximum amount of mortgage-free agricultural loans will be increased from Rs 1.6 lakh to Rs 2 lakh per person.
Small finance banks can extend pre-approved credit lines through UP.
Establish a panel to propose a framework for the responsible and ethical implementation of Artificial Intelligence (Free-AI) in the financial sector.
Implementation of the podcast function as an additional communication tool
Introducing MuleHunter.AI, Mule's AI bank account identification solution
Launch of Connect 2 Regulate – an open regulatory initiative
