RBI Releases Key Highlights of 2nd Bi-monthly Monetary Policy for FY 2025-26.
Banking & Finance
The Reserve Bank of India (RBI) held its 55th and 2nd Bi-monthly Monetary Policy Committee (MPC) Meeting for the Financial Year 2025–26 from June 4 to 6, 2025, under the chairmanship of RBI Governor Shri Sanjay Malhotra.
- The meeting was attended by MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta, and Dr. Rajiv Ranjan.
- RBI retained India’s GDP growth forecast for FY 2025–26 at 6.5%, with quarterly estimates: Q1 at 6.5%, Q2 at 6.7%, Q3 at 6.6%, and Q4 at 6.3%. The medium-term CPI inflation target remains at 4% within a ±2% band.
- To enhance formal credit availability in rural and semi-urban areas, the Loan-to-Value (LTV) ratio for small-ticket gold loans (under ₹2.5 lakh) has been increased to 85% from 75%.
Main Point :- (i) India’s gross FDI inflows surged by 14% to USD 81.0 billion in FY 2024–25, up from USD 71.3 billion the previous year. As of May 30, 2025, foreign exchange reserves stood at USD 691.5 billion.
(ii) RBI reduced the qualifying asset threshold for NBFC-MFIs from 75% to 60%, offering a regulatory boost to microfinance institutions.
(iii) RBI observed a slowdown in credit growth across all banking groups in FY 2024–25. Private sector banks saw the sharpest drop, down to 9.5% in March, after consistently maintaining over 15% growth for three years.
About RBI
Governor : Sanjay Malhotra
Headquarter : Mumbai
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