The Reserve Bank of India (RBI) has proposed a revolutionary measure in response to the increasing cases of online and digital fraud. According to a discussion paper released by the RBI, a one-hour 'cooling period' may now be mandatory for digital payments exceeding ₹10,000.

This step has been taken because approximately 2.8 million cases of digital fraud were recorded in 2025, resulting in a loss of over ₹22,900 crores to the general public. Since systems like UPI and IMPS allow for instant money transfers, victims often do not have time to file complaints or halt transactions. Under the proposed regulations, if an individual sends more than ₹10,000 to a new account, the money will not be credited immediately but will remain on 'provisional debit' (hold) for one hour.

During this time, if the user suspects fraud, they will be able to cancel the payment. However, to accommodate the everyday needs of the public, small payments and regular merchant transactions are excluded from this rule, minimizing inconvenience for the general public while significantly increasing the chances of recovery in major fraud cases. The RBI has also suggested stricter security standards for senior citizens and persons with disabilities.

For payments over ₹50,000 made by citizens aged over 70, a 'secondary co-authentication' rule is proposed, which may require approval from a trusted person. Additionally, a 'kill switch' is being considered, allowing customers to immediately block all digital channels of their accounts in emergencies. The Reserve Bank has sought suggestions from the public and banking experts on these proposals until May 8, 2026, after which final guidelines will be issued.

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Mumbai, April 8. The Governor of the Reserve Bank of India (RBI), Sanjay Malhotra, announced on Wednesday that there would be no change in the policy repo rate during the first monetary policy review of the current financial year.

After a three-day meeting of the Monetary Policy Committee (MPC), it was unanimously decided to maintain the repo rate at 5.25 percent. The Governor stated that the MPC has maintained a 'neutral' stance, which means that the Standing Deposit Facility (SDF) will remain at 5.00 percent and the bank rate at 5.50 percent. This decision comes at a time when global economic uncertainties and geopolitical tensions are at their peak.

The Governor specifically mentioned the ongoing conflict in West Asia (Israel-Iran-America), which has increased pressure on global supply chains and crude oil prices. He acknowledged that volatility in global financial markets has increased since March, but emphasized that India's economic fundamentals are significantly stronger compared to other countries. The Reserve Bank has projected the country's GDP growth for the financial year 2026-27 at 7 percent and the inflation rate at 4.5 percent.

The main objective of the RBI is to bring inflation down to a sustainable level of 4 percent, for which the bank remains fully vigilant. The decision to keep the repo rate unchanged has provided relief to the common man, as there will be no increase in EMIs for home loans, car loans, and personal loans at this time. However, those expecting a reduction in interest rates will have to wait longer, as the bank has not indicated any plans to lower rates.

Interest rates for fixed deposits (FD) will also remain at the current levels. Experts believe that given the global crisis and inflation, the RBI's 'wait and watch' approach will help maintain stability in the market.

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New Delhi, April 1 — The Reserve Bank of India (RBI) has extended the deadline for implementing its revised capital market exposure rules by three months. The rules will now come into effect on July 1, 2026, instead of the previously scheduled date of April 1.

This decision was made after feedback from banks, capital market intermediaries, and industry organizations, which highlighted operational and comprehension challenges in implementing the new rules.

The RBI had released the draft of these rules on February 13, 2026, followed by public consultations.

The RBI has also provided clarity on matters related to acquisition financing, loans against financial assets, and credit exposure to capital market intermediaries.

Under the new rules, the scope of acquisition finance has been expanded to include mergers and amalgamations, addressing previous ambiguities. However, this financing will only be provided in cases where the objective is to gain control over a non-financial company.

If the targeted company is a holding company, banks must ensure that potential benefits (synergies) are reflected across all its subsidiary companies, not just the parent company.

Companies are now permitted to obtain acquisition finance through Indian or foreign subsidiaries.

Meanwhile, refinancing rules have been tightened. Banks will only be able to refinance acquisition loans once the deal is completed and control over the company is established. Additionally, this money can only be used to repay existing acquisition loans.

Furthermore, if acquisition finance is provided to a subsidiary or special purpose vehicle (SPV), a corporate guarantee from the acquiring company will be required, enhancing the banks' security.

This decision gives banks additional time to align their systems and processes with the new rules. Moreover, the clarity brought by the new regulations is expected to reduce legal disputes and risks.

For investing companies, this framework opens new avenues for acquisition finance while also setting limits through control-based investments and strict refinancing rules.

The RBI has also provided some relief for capital market intermediaries, allowing banks to fund proprietary trading against 100 percent cash or cash-like collateral. Additionally, restrictions on financing against securities used for market-making activities have been lifted.

Mumbai, 5 December: The Reserve Bank of India on Friday reduced the key policy repo rate by 0.25 percentage point to 5.25 percent after reviewing macroeconomic conditions and global factors. The move comes amid strong economic growth and easing inflation.

As per agency report, the RBI also revised its GDP growth estimate for the current financial year from 6.8 percent to 7.3 percent, while the inflation forecast was lowered from 2.6 percent to 2 percent.

With the latest reduction, the repo rate has been cut by a total of 1.25 percentage points in 2025. Earlier, the central bank had reduced the rate by one percentage point between February and June this year. In the monetary policy reviews held in August and October, the repo rate was kept unchanged at 5.5 percent.

RBI Governor Sanjay Malhotra, sharing details of the decisions taken during the three-day meeting of the six-member Monetary Policy Committee, said the committee unanimously decided to lower the repo rate to 5.25 percent and retain the stance of monetary policy as neutral. This indicates that the central bank will remain flexible in adjusting policy rates based on economic conditions.

The repo rate is the interest rate at which commercial banks borrow funds from the central bank to meet short-term requirements. A reduction in the repo rate increases the likelihood of changes in interest rates on loans such as housing and vehicle finance.

For the financial year 2025–26, the RBI has increased the GDP growth forecast from 6.8 percent to 7.3 percent, while the retail inflation projection for the current fiscal has been revised downward to 2 percent from the earlier estimate of 2.6 percent.

Mumbai – Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday underlined the need for banks and corporates to work together in building a robust investment cycle at a time when the global economic environment remains unstable. Speaking at the annual banking conference FIBAC 2025, he said the RBI is examining measures to expand bank credit, including to emerging sectors, to sustain growth.

Malhotra stressed that while regulated entities may appear focused on growth and the regulator on stability, both share the same vision of a developed India. He said the RBI looks forward to working closely with regulated institutions to improve efficiency in financial intermediation and ensure that the benefits reach people effectively.

As per agency report, he noted that with bank and corporate balance sheets at their strongest levels, it is crucial for them to come together to reignite the investment cycle, which will play a central role in boosting economic momentum. He assured that the RBI would continue to steer monetary policy with price stability as its primary goal, while keeping growth objectives in focus.

The Governor highlighted the resilience of India’s economy, describing it as a symbol of strength and optimism backed by solid macroeconomic fundamentals. He cautioned, however, that the nation is at a critical juncture, facing challenges from rising trade uncertainties and ongoing geopolitical tensions, which require setting new growth benchmarks.

Malhotra also emphasized the importance of embracing technology, stating that the central bank would continue to adopt innovations such as artificial intelligence and machine learning. He urged all regulated entities to invest in such technologies for the benefit of both institutions and their customers.

He concluded by calling for accelerated efforts to address emerging challenges while also seizing new opportunities, reiterating that the collaboration between banks and corporates is essential to drive long-term investment and economic growth.

Mumbai, June 6 – In a move aimed at supporting economic growth amid easing inflation, the Reserve Bank of India’s Monetary Policy Committee (MPC) on Friday announced a 0.50 percent cut in the key policy rate (repo rate) for the third consecutive time. The decision is expected to bring relief to borrowers by making home, auto, and personal loans cheaper. With this, the RBI has reduced the repo rate by a total of 1 percent since February 2025.

Announcing the decision after the MPC's 55th meeting—its second bi-monthly review for the current financial year—RBI Governor Sanjay Malhotra said the earlier two cuts were of 0.25 percent each, and this time a more aggressive cut of 0.50 percent has been approved. The revised repo rate of 5.5 percent comes into effect immediately.

To further ease liquidity in the system, Malhotra also announced a phased reduction in the Cash Reserve Ratio (CRR) by 1 percent. This measure is projected to infuse around Rs. 2.5 lakh crore of liquidity into the banking system. Consequently, the CRR will drop from 4 percent to 3 percent.

As per agency report, under the Liquidity Adjustment Facility (LAF), the revised policy repo rate of 5.5 percent will be accompanied by a new Standing Deposit Facility (SDF) rate of 5.25 percent, while the Marginal Standing Facility (MSF) and bank rate will be adjusted to 5.75 percent.

Governor Malhotra emphasized that after reducing the repo rate by 100 basis points since February 2025, the MPC believes that the scope for further rate cuts has now narrowed. Therefore, it has decided to shift its stance from “accommodative” to “neutral.” Moving forward, the MPC will closely monitor incoming data and evolving conditions to maintain a balanced approach between growth and inflation.

Mumbai, May 5 – The Reserve Bank of India added nearly 25 tonnes of gold to its reserves during the second half of the financial year 2024–25, a period that witnessed a significant surge in global gold prices. As per agency report, this addition raised the central bank’s total gold holdings to 879.59 tonnes by the end of March 2025, up from 854.73 tonnes at the end of September 2024.

The central bank’s semi-annual report on the management of foreign exchange reserves revealed that RBI increased its gold reserves by a total of 57 tonnes during the full financial year, marking the largest annual addition in seven years. This expansion coincided with a nearly 30 percent rise in gold prices over the same period.

According to the report, the amount of gold stored domestically in RBI's own vaults increased slightly to 511.99 tonnes. In addition to domestic holdings, the central bank held 348.62 tonnes of gold with the Bank of England and the Bank for International Settlements (BIS), while another 18.98 tonnes were maintained as deposits.

Earlier, during the first half of FY 2024–25, the RBI had already shifted a substantial quantity of gold to local vaults. The volume of gold stored domestically had grown from 408 tonnes at the end of March 2024 to 510.46 tonnes by the end of September, in what was described as one of the largest transfers of gold within India since 1991, amidst rising geopolitical uncertainty.

The report also noted that gold’s share in India’s total foreign exchange reserves rose from 9.32 percent six months ago to 11.70 percent by the end of March 2025. However, the overall forex reserves declined to 668.33 billion dollars from 705.78 billion dollars recorded at the end of September 2024.

Despite the drop, the reserves remain sufficient to cover 10.5 months of import requirements, although this is lower than the 11.8 months’ coverage observed at the end of the previous half-year period.

Mumbai, April 21 – In a major update aimed at promoting financial inclusion among the youth, the Reserve Bank of India (RBI) has allowed children above the age of 10 to independently open and operate savings and fixed deposit accounts. As per agency report, the central bank issued revised guidelines to all commercial and cooperative banks regarding the opening and operation of minor accounts.

Under the new guidelines, minors of any age can open savings and fixed deposit accounts through their natural or legal guardians. The RBI has also clarified that minors may designate their mother as the guardian while opening such accounts.

However, a key change now permits minors aged 10 years and above to independently open and operate savings or term deposit accounts if they wish to do so. Banks, in turn, can determine withdrawal limits and operational conditions based on their internal risk management policies. These terms and conditions must be clearly communicated to the account holder.

Additionally, once a minor turns 18, banks are required to obtain fresh operational instructions and updated signature specimens for record-keeping purposes.

The RBI circular also states that banks are free to offer internet banking, ATM/debit card access, cheque book facilities, and other such services to minor account holders, depending on their internal policies and product offerings. However, banks must ensure that no overdrafts are permitted on these accounts and that they always maintain a positive balance.

Further, the RBI emphasized that banks must conduct proper due diligence both at the time of opening minor accounts and on an ongoing basis. To ensure full compliance, the central bank has instructed all banks to formulate new policies or amend existing ones in line with the revised guidelines by July 1, 2025.

New Delhi, April 11, 2025 — Senior leaders from the Confederation of All India Traders (CAIT) have expressed strong support for the Reserve Bank of India's (RBI) recent policy decisions regarding digital fraud prevention, co-lending, and the reduction in the repo rate, calling them timely and confidence-boosting for the nation’s financial system. According to them, these initiatives will improve credit access, enhance consumer spending, and invigorate overall economic activity.

BJP MP and CAIT’s National General Secretary Praveen Khandelwal acknowledged the significance of Deputy Governor Swaminathan’s recent remarks concerning rising incidents of digital fraud. He stressed that in an increasingly digitized economy, cyber threats pose a major risk and underlined the need for robust cybersecurity frameworks and grievance redressal mechanisms. He added that a secure digital ecosystem could be achieved through effective collaboration among fintech firms, banks, and regulatory bodies.

CAIT National President B.C. Bhartia and Gujarat Chapter Head Pramod Bhagat lauded RBI Governor Sanjay Malhotra’s emphasis on strengthening co-lending models. They noted that co-lending not only supports priority sectors but also enables broader credit inclusion for underserved segments, especially small traders and entrepreneurs. Promoting co-lending partnerships between traditional banks and non-banking financial companies (NBFCs), they said, will expand access to formal credit in various sectors.

Commenting on the recent repo rate cut, the leaders described it as a forward-looking and progressive move. They stated that lower borrowing costs would provide relief to consumers by reducing monthly EMI burdens, thereby increasing disposable income and encouraging higher spending. This boost in consumption, they believe, will uplift market demand and contribute positively to economic growth.

The CAIT leaders further highlighted that cheaper loans would particularly benefit the housing and real estate sectors, as interest rate reductions enhance purchasing power and affordability. Overall, they emphasized that the RBI's initiatives reflect a pragmatic approach to addressing emerging financial challenges while supporting inclusive growth across the economy.

In a bid to strengthen the Indian economy amid growing concerns over retaliatory tariffs by the United States, the Reserve Bank of India (RBI) on Wednesday reduced the benchmark repo rate by 0.25 percent for the second consecutive time, bringing it down to 6 percent. The central bank also shifted its monetary policy stance from ‘neutral’ to ‘accommodative’, hinting at the possibility of further rate cuts in the near future.

As per agency report, RBI Governor Sanjay Malhotra, while announcing the first bi-monthly monetary policy review for the financial year 2025-26, said the decision was taken unanimously by the six-member Monetary Policy Committee (MPC). The committee comprises three RBI officials and three external members.

This reduction is expected to lower interest rates on loans linked to external benchmarks such as the repo rate, making housing, automobile, and personal loans more affordable for consumers. If commercial banks pass on the full benefit of the rate cut to borrowers, EMIs on various loans could reduce by around 0.25 percent.

This latest policy move follows a similar 0.25 percent cut in February 2025, the first adjustment in repo rates in over two and a half years, since May 2020. It brings the borrowing cost to its lowest level since November 2022, facilitated by easing inflation and a decline in crude oil prices.

The central bank also revised its GDP growth forecast for 2025-26 from 6.7 percent to 6.5 percent, acknowledging the economic uncertainty sparked by the United States’ imposition of a 26 percent tariff on Indian exports. Some economists estimate this could reduce India’s GDP growth by 0.2 to 0.4 percent in the current fiscal.

RBI’s inflation outlook was also adjusted, bringing the estimate down to 4 percent from the earlier 4.2 percent, aligning closely with its medium-term target of maintaining retail inflation within a two percent band on either side of the 4 percent mark.

Governor Malhotra emphasized that while food inflation has eased significantly, the central bank remains vigilant about risks stemming from global uncertainties and potential climate-related disruptions. He noted that recent global economic developments, including weakening of the US dollar, falling bond yields, declining stock markets, and the lowest oil prices in over three years, have contributed to a volatile environment.

Malhotra, who assumed office in December, has demonstrated a more growth-oriented approach than his predecessor, Shaktikanta Das. Alongside the rate cuts, the RBI has injected over $80 billion of liquidity into the banking system over the past two months, indicating a clear focus on supporting domestic economic momentum.

According to analysts, the accommodative policy stance signals that the RBI is prepared to maintain or further reduce interest rates depending on evolving economic conditions. Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, suggested that there is room for another 0.75 to 1.0 percent cut this year, while Radhika Rao of DBS Bank expects a further 0.50 percent reduction.

Commenting on the broader economic impact, Malhotra acknowledged that retaliatory tariffs and trade disruptions could negatively affect global and domestic growth. Although it is challenging to quantify the full impact of tariffs and other external variables, the central bank remains focused on ensuring macroeconomic stability and steady growth.

In addition to rate cuts, the RBI announced several other measures. The National Payments Corporation of India (NPCI) has been allowed to revise UPI transaction limits for consumer-to-merchant payments based on market requirements. The central bank also proposed a review of lending norms against gold jewelry to enhance financial access.

The next meeting of the Monetary Policy Committee is scheduled for June 4 to 6, during which the RBI will reassess the economic outlook and determine future monetary actions.

Mumbai, March 18 – Life Insurance Corporation of India (LIC) has urged the Reserve Bank of India (RBI) to introduce long-term government bonds, including a 100-year tenure, to support long-term investment needs. A senior LIC official confirmed the request on Tuesday, stating that such bonds would align with the insurer’s long-duration policies.

As per agency report, LIC’s Managing Director and CEO, Siddhartha Mohanty, highlighted the necessity for extended-tenure bonds, given that the company sells life insurance policies that span an entire lifetime. While RBI currently allows 20-30-year bonds and has recently approved 40-year bonds, Mohanty expressed optimism that 50-year and 100-year bonds could also be introduced.

Speaking at the GCA25 event in Mumbai, he mentioned that LIC representatives have been in discussions with RBI regarding this proposal and that the central bank is actively considering it. He also pointed out that while several countries have issued 100-year bonds in global markets, India has yet to take this step due to limited demand and low secondary market activity.

Mohanty emphasized that introducing ultra-long-term bonds would provide insurers and pension funds with a stable investment avenue while supporting long-term infrastructure projects in the country.

Mumbai, March 15 – The Reserve Bank of India (RBI) has instructed IndusInd Bank's board to complete corrective measures within the current quarter, following the bank's disclosure of a major accounting discrepancy amounting to ₹2,100 crore.

As per agency report, earlier this week, IndusInd Bank revealed accounting irregularities that could impact its net worth by approximately 2.35%. The disclosure triggered a sharp decline in the bank’s stock value.

RBI stated that the bank had already engaged an external audit team to conduct a comprehensive review of its existing mechanisms and assess the actual financial impact. The central bank has directed IndusInd Bank’s board and management to complete all necessary corrective actions by the January-March quarter while ensuring full disclosure to stakeholders.

RBI also reassured depositors, stating that there is no need for panic or speculation regarding the bank’s financial stability. It emphasized that IndusInd Bank remains financially stable and that the central bank is closely monitoring the situation.

IndusInd Bank clarified that the accounting lapse first came to light around September-October last year, and it provided an initial report to RBI last week. The final assessment of the financial impact will be determined once the external agency appointed by the bank submits its conclusive report in early April.