<p class="bodytext">The decision of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) to leave the policy rate unchanged at 5.25% was not unexpected, since lowering rates to boost growth is not a priority of the times, and the past few quarters have seen such cuts. The growth outlook has improved, and the economy is expected to grow by 7.4% this financial year, on the back of private consumption, fixed investment, and a strong service sector. Manufacturing has shown signs of growth, and the construction sector is performing well. The MPC has revised its growth projections for the first and second quarters of 2026-27 to 6.9% and 7%, respectively. RBI Governor Sanjay Malhotra said the Committee decided to maintain a neutral stance after a detailed assessment of the evolving macroeconomic conditions and the overall economic outlook.</p>.<p class="bodytext">The RBI has forecast retail inflation based on the Consumer Price Index (CPI) at 2.1% for 2025-26, which is below its benchmark rate of 4%. Projections for the first two quarters of the next financial year were revised to 4% and 4.2%, respectively, from the previous forecast of 3.9% and 4%. Full-year projections have not been made because of the impending base year revision of the series for Gross Domestic Product (GDP) and the CPI. While the composition of the new CPI and GDP series is likely to have implications for future projections, it will not directly affect economic activities. There are positive takeaways from the lower weightage for food items in the new CPI, the trade agreement with the European Union (EU), the reduction in tariffs by the US, and the government’s capital expenditure thrust. However, Malhotra noted that external headwinds have intensified since the last MPC meeting, making caution a policy imperative.</p>.'Absolute robbery,' SC on digital frauds worth Rs 54,000 crore, tells Centre to draft SoPs with RBI & others .<p class="bodytext">By proposing a framework which would compensate banking customers for losses of up to Rs 25,000 incurred in small-value fraudulent transactions, the central bank has taken a welcome decision. It has also announced a discussion paper on measures to enhance safety in digital payments. Steps are being initiated to increase production and employment in the country by doubling collateral-free MSME loans, from Rs 10 lakh to Rs 20 lakh. This is intended to help micro-enterprises. The proposal to allow banks to lend to real estate infrastructure trusts (REITs) may give a fillip to commercial real estate and create more employment. The relaxation in norms for branch expansion for select Non-Banking Financial Companies (NBFCs) is also expected to create jobs.</p>
<p class="bodytext">The decision of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) to leave the policy rate unchanged at 5.25% was not unexpected, since lowering rates to boost growth is not a priority of the times, and the past few quarters have seen such cuts. The growth outlook has improved, and the economy is expected to grow by 7.4% this financial year, on the back of private consumption, fixed investment, and a strong service sector. Manufacturing has shown signs of growth, and the construction sector is performing well. The MPC has revised its growth projections for the first and second quarters of 2026-27 to 6.9% and 7%, respectively. RBI Governor Sanjay Malhotra said the Committee decided to maintain a neutral stance after a detailed assessment of the evolving macroeconomic conditions and the overall economic outlook.</p>.<p class="bodytext">The RBI has forecast retail inflation based on the Consumer Price Index (CPI) at 2.1% for 2025-26, which is below its benchmark rate of 4%. Projections for the first two quarters of the next financial year were revised to 4% and 4.2%, respectively, from the previous forecast of 3.9% and 4%. Full-year projections have not been made because of the impending base year revision of the series for Gross Domestic Product (GDP) and the CPI. While the composition of the new CPI and GDP series is likely to have implications for future projections, it will not directly affect economic activities. There are positive takeaways from the lower weightage for food items in the new CPI, the trade agreement with the European Union (EU), the reduction in tariffs by the US, and the government’s capital expenditure thrust. However, Malhotra noted that external headwinds have intensified since the last MPC meeting, making caution a policy imperative.</p>.'Absolute robbery,' SC on digital frauds worth Rs 54,000 crore, tells Centre to draft SoPs with RBI & others .<p class="bodytext">By proposing a framework which would compensate banking customers for losses of up to Rs 25,000 incurred in small-value fraudulent transactions, the central bank has taken a welcome decision. It has also announced a discussion paper on measures to enhance safety in digital payments. Steps are being initiated to increase production and employment in the country by doubling collateral-free MSME loans, from Rs 10 lakh to Rs 20 lakh. This is intended to help micro-enterprises. The proposal to allow banks to lend to real estate infrastructure trusts (REITs) may give a fillip to commercial real estate and create more employment. The relaxation in norms for branch expansion for select Non-Banking Financial Companies (NBFCs) is also expected to create jobs.</p>
