The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.5 per cent and adopted a neutral stance, citing tariff uncertainty. Retail inflation eased to 2.07 per cent in August 2025, aided by softer food prices and a favourable base effect. The RBI has revised GDP growth estimates for 2025-26 to 6.8 per cent from 6.5 per cent, while lowering the inflation estimate from 3.1 per cent to 2.6 per cent. Further,
to strengthen the resilience of the Indian banking system, the RBI announced plans to provide a framework enabling Indian banks to finance acquisitions by domestic corporates, thereby expanding capital-market lending. Other proposals include removing the regulatory cap on lending against listed debt securities, raising the lending limit against shares from Rs 2 million to Rs 10 million, and increasing initial public offering (IPO) financing limits from Rs 1 million to Rs 2.5 million per individual. The RBI will also reduce risk weights applied on loans to non-banking financial companies (NBFCs) for operational infrastructure projects, among other reforms.