From Repo Rate Cut to Digital Payments: Guv Sanjay Malhotra Announces RBI's Big Policy Moves |Key Takeaways

Outlook Business Desk

Repo Rate Cut

RBI reduced repo rate by 25 bps, bringing it down from 6.25% to 6% in its latest policy review.

Stance Turns Accommodative

MPC changed its policy stance from neutral to accommodative to support growth amid trade tensions.

Growth Forecast Lowered

GDP projection for FY26 has been revised down from 6.7% to 6.5% by the RBI due to external risk.

Inflation Estimate Reduced

The Consumer Price Index inflation forecast was reduced from 4.2% to 4.0%, reflecting easing price pressures.

Surplus System Liquidity

System liquidity remained surplus in January 2025, with a daily average of over Rs 3.1 lakh crore, reflecting comfortable liquidity conditions in the banking system

FY26 GDP Forecast

RBI projected GDP growth at 6.5% in Q1, 6.7% in Q2, 6.6% in Q3, and 6.3% in Q4 of FY25-26

P2P Transaction Limit Unchanged

The RBI announced that the per-transaction limit for peer-to-peer (P2P) payments will remain unchanged at Rs 1 lakh, maintaining the existing cap for digital transactions.

NPCI to Decide Merchant Limits

RBI stated that the NPCI will decide on transaction limits for merchant payments made via UPI. This means the existing per-transaction cap may vary depending on merchant categories.

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