RBI repo rate unchanged, what does it mean for you? compensation proposed for fraud victims
This time, the repo rate has not been changed. It has been kept at 5.25%. This means that loans will not become more expensive, and your EMI will not increase. RBI Governor Sanjay Malhotra announced the decisions taken at the Monetary Policy Committee meeting today, February 6. The Reserve Bank of India (RBI) had reduced the interest rate by 0.25% to 5.25% in December.
What is repo rate?
The rate at which the RBI lends to banks is called the repo rate. When the RBI reduces the repo rate, banks get cheaper loans, and they pass on this benefit to their customers.
Repo rate changes in the past
In February 2025, interest rates were reduced from 6.5% to 6.25%.
This reduction by the Monetary Policy Committee was made after almost 5 years.
In the second meeting in April, the interest rate was again reduced by 0.25%.
In June, the RBI reduced the rates by 0.50% for the third time.
After the 0.25% reduction in December, the interest rates came down to 5.25%.
Meanwhile, according to the RBI, the inflation situation is currently reassuring. Governor Sanjay Malhotra has revised the retail inflation forecast for the financial year 2026 upwards from 2% to 2.1%.
Compensation of up to Rs 25,000 for customers who are victims of fraud
The Reserve Bank of India (RBI) has proposed a new framework under which customers who suffer losses due to fraudulent transactions involving small amounts will be compensated up to ₹25,000.
Governor Malhotra said, "As you all know, there have been several fraudulent transactions recently, and the Reserve Bank has taken several steps to prevent them. In this regard, we will also be releasing a discussion paper on measures to enhance the security of digital payments.
These measures may include layering of credit limits and additional authentication for specific user groups such as senior citizens."