Will your EMI decrease? Governor Sanjay Malhotra made four historic announcements on repo rate and forex reserves. Will your EMI reduce? Governor Sanjay Malhotra made these 4 big historic decisions on repo rate, forex reserve – ..

The eyes of crores of bank account holders of the country and common people paying home loan and car loan EMIs were fixed on the results of the Monetary Policy Committee (MPC) meeting of the Reserve Bank of India (RBI) today. RBI Governor Sanjay Malhotra has made it clear in a press conference today that the central bank has decided to keep the main policy rate i.e. Repo Rate completely unchanged at 5.25%. This simply means that at present there is going to be no change in your loan EMI. In view of the ongoing tensions at the global level, especially in West Asia, and the risk of inflation arising due to rising crude oil prices, the RBI has continued its tight and ‘neutral’ stance.

RBI laid a diplomatic maze to save the weakening rupee against the dollar. For some time now, the Indian Rupee was under continuous pressure due to the strength of the US Dollar in the global market. To reduce this pressure and strengthen the international diplomacy of Rupee, RBI has announced a very big and masterstroke. The Governor has announced full hedging support for Authorized Dealer (AD) banks to raise FCNR(B) deposits of 3 to 5 years to provide stability to the foreign exchange market. Along with this, the deadline for concessional Forex Swap Facility for External Commercial Borrowing (ECB) taken by Public Sector Companies (PSUs) has been extended to 30 September 2026. Economic experts believe that this step will see a huge improvement in the health of the rupee.

Treasury open for Non-Resident Indians (NRI-OCI), strict restrictions on foreign investment removed To increase the inflow of foreign capital into the Indian stock market and economy, the Reserve Bank has completely opened the doors of investment for NRI and OCI card holders. According to the new rules, now even without SEBI registration, NRI and OCI investors can increase their investment limit in the Indian equity market to a large extent. The most surprising and big decision was that by expanding the scope of this special facility, it has now been extended to individual foreign citizens (PROIs) living in any corner of the world. Apart from this, the old limits on short-term investment and individual securities under the general route for Foreign Portfolio Investors (FPIs) have also been removed, due to which it is believed that there will be rain of dollars in Dalal Street.

Country’s forex reserve reaches historical record level, new figures of GDP and inflation released Governor Sanjay Malhotra shared a very pleasant information assuring the nation that India’s foreign exchange reserves have currently reached a strong and unprecedented level of $ 682.3 billion, which is a very strong shield for India to deal with any external global shock or recession. However, in view of the ongoing supply chain problems around the world and the impact of El Niño, the RBI has slightly reduced the country’s GDP growth forecast for the current financial year (FY27) to 6.6% from 6.9%. Along with this, the estimate of retail inflation rate (CPI Inflation) has been revised to 5.1%. Overall, this new policy of RBI is proving to maintain the pace of economic growth and provide a safe haven to the financial markets of the country.