No Change in Interest Rates RBI Maintains Status Quo

The Reserve Bank of India (RBI) kept the key repo rate unchanged at 5.25% in its third bi-monthly monetary policy review of the financial year. This marks the fourth consecutive time that the central bank has maintained the same rate. The Monetary Policy Committee (MPC), chaired by RBI Governor Sanjay Malhotra, unanimously decided to maintain the status quo and continue with a neutral policy stance.

The RBI raised its GDP growth forecast for the current financial year from 6.6% to 6.7% and lowered the inflation projection from 5.1% to 5%. The central bank said it is closely monitoring the impact of the West Asia crisis and rising fuel prices on inflation. Strong domestic consumption, manufacturing activity, services growth, and exports are supporting India's economic growth.

The RBI also announced plans to issue licences for new urban cooperative banks after more than two decades. It said new guidelines will be introduced to improve transparency in lending interest rates. On UPI transaction charges, RBI Governor Sanjay Malhotra said the processing cost of digital payments has to be borne by someone and the framework for charges will be examined.