April 9, 2025 | Moneycontrol
In a significant policy move aimed at boosting economic momentum, the Reserve Bank of India (RBI) today announced a 25 basis points cut in the repo rate, bringing it down to 6%. The decision was taken during the latest Monetary Policy Committee (MPC) meeting amid rising concerns over tariffs and inflationary pressures.
Speaking at the post-policy press conference, RBI Governor Sanjay Malhotra emphasized the need to support growth while keeping a close watch on inflationary trends. “We are cautiously optimistic,” he said, reinforcing the central bank’s balanced approach.
On Gold Loan Guidelines
Clarifying concerns surrounding recent speculation on gold loan tightening, Governor Malhotra said, “We never said we would tighten norms for gold loans. What we’re working on is a harmonisation of rules. Let’s wait for the draft guidelines — to our mind, it is only a rationalisation.”
This statement is expected to bring some clarity to stakeholders in the gold loan segment, especially NBFCs and small finance banks.
On the IndusInd Bank Crisis
Governor Malhotra also addressed the ongoing situation involving IndusInd Bank, referring to it as a standalone event. “These are episodes, not failures. At a system level, we are very safe and secure,” he stated firmly. “We just have to ensure, through various means, that these episodes happen less frequently.”
Industry Reaction
Rohit Garg, CEO & Co-Founder of Olyv, remarked that the move signals support for India’s growth ambitions while maintaining a watchful eye on macroeconomic risks. “For India’s MSMEs and middle-class borrowers, even a small rate cut can provide significant relief. But the key will be how effectively the financial system transmits these benefits,” Garg said.
He also noted that while inflation seems to be easing, global uncertainties—ranging from commodity price volatility to geopolitical risks—necessitate a cautious approach.
Key Takeaways:
- Repo rate reduced by 25 bps to 6%
- RBI working on harmonising gold loan guidelines
- IndusInd Bank situation termed an ‘episode’, not a systemic failure
- Focus on growth support with inflation watchfulness
- Industry urges swift transmission of benefits to consumers
As India navigates a complex global environment, the RBI’s latest policy decisions are expected to provide both reassurance and stimulus to the domestic economy.
