RBI Holds Policy Repo Rate at 6.50% as Digital Banking Infrastructure Shields Domestic Credit
The Reserve Bank of India's Monetary Policy Committee (MPC) has voted by majority to maintain the benchmark policy repo rate at 6.50%, highlighting robust underlying economic resilience.
Commercial bank balance sheets continue to demonstrate structural health, with the scheduled commercial bank gross non-performing asset (GNPA) ratio declining to a multi-decade low of 2.6%. Domestic capital adequacy ratios (CRAR) average 16.8%, well above Basel III minimum statutory requirements.
The central bank noted that real-time credit intelligence platforms and GST-linked digital invoicing have drastically reduced corporate loan delinquency. Credit growth to micro, small, and medium enterprises (MSMEs) expanded at 14.2% annualized without compromising underwriting discipline.
"India's macroeconomic stability is anchored in institutional discipline, transparent bank capitalization, and modern regulatory surveillance."
Governor Shaktikanta Das reiterated that while headline consumer price inflation has aligned with the 4% target band, monetary policy vigilance remains essential amid persistent global geopolitical and commodity volatility.