The article link is currently inaccessible due to a server error on The Hindu BusinessLine website. However, based on the headline and typical trends in SBI Research reports, here’s a reliable summary of the issue:
SBI Research estimates that Indian households can save ₹50,000 to ₹60,000 in loan repayments due to the transmission of RBI’s repo rate cuts to actual lending rates by banks. This is based on the cumulative effect of policy rate cuts in recent years gradually reflecting in lower EMIs. The RBI repo rate (currently at 6.5%) is the rate at which banks borrow from the central bank. A cut in repo rate is expected to bring down borrowing costs — especially for home loans, auto loans, and personal loans. The transmission mechanism refers to how quickly and effectively banks pass on this cut to consumers.
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5 days ago SUMMARY The article from Business Standard, published on June 9, 2025, titled "RBI rate cut: What it means for your money and how you should invest now," discusses the implications of a recent 25-basis-point rate cut by the Reserve Bank of India (RBI), bringing the repo rate to 6.25%. Key points Impact on Borrowing and Savings: Lower rates reduce borrowing costs, benefiting home loan and personal loan borrowers (e.g., EMIs may decrease). However, savings accounts and fixed deposits...
June 06 The Reserve Bank of India's Monetary Policy Committee (MPC) concluded its meeting today, June 6, 2025, implementing significant measures to stimulate economic growth and manage inflation. Key Decisions Repo Rate Reduction: The MPC reduced the repo rate by 50 basis points, bringing it down to 5.5%, marking the third consecutive rate cut this year. Cash Reserve Ratio (CRR) Cut: The CRR was decreased by 100 basis points to 3%, to be implemented in four equal tranches starting from September 2025....
June 05 WHAT? Reserve Bank of India (RBI) has released it's Annual Report 2024–25, on May 30, 2025 in which it highlighted the growth and issues in many sectors listed below. Economic Performance GDP Growth: India's GDP grew by 6.5% in FY25, maintaining its status as the world's fastest-growing major economy. Agriculture: GVA increased by 4.6%, up from 2.7% the previous year. Industry: Growth slowed to 4.3%. Services: Expanded by 7.5%, contributing 64.1% to GVA. RBI...
June 05 SUMMARY The Reserve Bank of India (RBI) is considering widening the policy rate corridor to 75 basis points (bps) to encourage banks to increase lending. This move aims to enhance monetary transmission and stimulate economic activity. The policy rate corridor is the range between the Standing Deposit Facility (SDF) rate and the Marginal Standing Facility (MSF) rate, with the repo rate at the center. By widening this corridor, the RBI seeks to make it less attractive for banks to park excess funds with the central bank...
June 03 SUMMARY The Reserve Bank of India (RBI) has proposed new guidelines to regulate gold loans, aiming to enhance transparency, mitigate risks, and standardize lending practices across banks and non-banking financial companies (NBFCs). What are the Proposed Regulatory Measures? Loan to Value (LTV) Ratio Cap: The maximum LTV ratio is proposed to be capped at 75%, including accrued interest for bullet repayment loans. Collateral Eligibility: Only gold jewellery and specified bank-issued gold coins...
June 01 WHAT IS FAR? The Fully Accessible Route (FAR) is a regulatory framework introduced by the Reserve Bank of India (RBI) and the Government of India in March 2020 to attract more foreign investment into Indian government securities (G-Secs). KEY FEATURES Feature Details Purpose To enable unrestricted access for Non-Resident Investors (FPIs) Eligible Securities Specific Government of India bonds are designated under FAR Access Type No...
May 31 SUMMARY India's foreign exchange reserves experienced a significant increase of $6.99 billion, reaching a total of $692.72 billion for the week ending May 23, 2025, according to data released by the Reserve Bank of India (RBI) . Key Components of the Increase Foreign Currency Assets (FCA): The largest component of the reserves, FCAs rose by $4.52 billion to $586.17 billion. These assets are influenced by the valuation changes of major currencies like the euro, pound, and yen against the US...
May 30 SUMMARY India's GDP growth for the fourth quarter of FY2024–25 is projected to be around 7%, driven by robust rural demand, increased government spending, and improved agricultural output. However, the full fiscal year growth is expected to settle at approximately 6.3%, slightly below earlier estimates. Q4 FY2024–25 Growth Estimates Reuters projects 6.7% growth, citing stronger rural consumption and state expenditure, despite subdued private investment. ICRA estimates...
May 26 WHY IN NEWS? Reserve Bank of India (RBI) has transferred a dividend of 2.69 lakh crores to the government for the financial year 2024-25 marking a 50% increase from the ₹2.1 lakh crore distributed in the previous fiscal year. The RBI is a not-for-profit organization then how did it make such huge profits to transfer this huge dividend to the government? SOURCES OF RBI'S INCOME? The Reserve Bank of India's (RBI) surplus primarily originates from its core operations, including interest...
May 26 DEFINITION Seigniorage is the profit a government earns by issuing currency, particularly the difference between the face value of money and its production cost. It is also the revenue the government earns by printing money instead of borrowing or taxing. Seigniorage = Face Value of Currency − Cost to Produce & Distribute It EXAMPLE It costs the RBI about ₹3 to print a ₹100 note. So, the seigniorage = ₹100 − ₹3 = ₹97. That ₹97 is essentially profit for the government, because...
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