RBI Makes 5 Powerful Moves, From Interest Rates To Rupee & Rural Banks — What It Means For You & The Economy?

Mumbai: The Reserve Bank of India’s Monetary Policy Committee (MPC) completed its three-day meeting on October 1, 2025. RBI Governor Sanjay Malhotra announced that the repo rate will remain unchanged at 5.50 percent, with all six MPC members agreeing to this decision.

The Standing Deposit Facility (SDF) rate stays at 5.25 percent, and the Marginal Standing Facility (MSF) rate remains at 5.75 percent. This means no immediate change in interest rates for home loans, EMIs, or savings accounts.

GDP Growth Forecast Revised Upward

The RBI gave a positive update on India’s economic growth. The GDP forecast for FY 2026 has been raised from 6.5 percent to 6.8 percent.

Governor Malhotra said that strong domestic demand, steady investments, and stable conditions are helping India grow faster.

Quarterly estimates are also improved:

Q2 FY26: 7 percent (up from 6.7 percent)

Q3 FY26: 6.4 percent

Q4 FY26: 6.2 percent

Q1 FY27: 6.4 percent

Inflation Forecast Lowered

The RBI has also cut its inflation estimate for FY 2026, reducing it from 3.1 percent to 2.6 percent. According to the Governor, the drop in food prices and the recent reduction in GST rates have helped bring down inflation. For Q1 FY27, the inflation forecast has also been revised to 4.5 percent from 4.9 percent.

RBI Closely Watching Indian Rupee

Speaking about the Indian currency, Governor Malhotra admitted that the rupee has been under pressure in recent days with some fluctuations. However, he assured that the RBI is closely monitoring every movement of the rupee and is ready to take action whenever necessary to ensure stability.

Ombudsman Scheme Extended to Rural Banks

A major decision was also made regarding customer complaints. Now, rural cooperative banks will also come under the RBI Ombudsman Scheme. This means people in villages and small towns will be able to register complaints directly if they face issues with their banks, making the banking system more fair and accessible.

These five announcements show the RBI's balanced approach—supporting growth while keeping inflation and currency stable, and making banking more inclusive for everyone across India.