RBI MPC October 2025: Repo Rate Held at 5.50%
Why in the news
The 57th MPC (29 September-1 October 2025) left rates unchanged but announced many regulatory steps.
Key facts
- Repo 5.50%; SDF 5.25%; Bank Rate and MSF 5.75%.
- 2025 cuts totalled 100 bps (Feb, Apr, Jun), from 6.5%.
- FY26 GDP projection 6.8% (earlier 6.5%); CPI 2.6% (earlier 3.1%).
- CAD 0.2% of GDP in Q1 FY26, against 0.9% a year earlier.
- Remittances US$35.3 billion; April-July FDI US$37.7 billion.
Regulatory announcements
- ECL provisioning for scheduled commercial banks and revised Basel III from April 1, 2027.
- Risk-based deposit insurance premium.
- Loans against shares: ₹20 lakh to ₹1 crore; IPO finance: ₹10 lakh to ₹25 lakh.
- No ceiling on loans against listed debt securities; banks may fund acquisitions.
- Large-corporate lending cap of the 2016 circular removed; RBI tracks system-level concentration.
- Exporters’ foreign-currency repatriation 1 to 3 months; merchanting trade 4 to 6 months.
- Lower risk weights for NBFC infrastructure loans; revised Ombudsman Scheme; stronger BSBD accounts.
Exam angle
- ECL: provisioning on expected credit losses.
- Repo: RBI’s short-term lending rate to banks.
- CAD: goods, services and transfers gap.