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RBI Monetary Policy — August 2026

📅 Published 07 Aug 2026 · Aug 2026

RBI Monetary Policy — August 2026

The RBI conducted its 62nd MPC meeting and 3rd Bi-monthly Monetary Policy meeting of FY2026-27 from 3–5 August 2026.

Major Decisions

IndicatorRBI Decision
Repo Rate5.25%
SDF Rate5.00%
MSF Rate5.50%
Bank Rate5.50%
Policy stanceNeutral
FY27 GDP forecast6.7%
FY27 CPI inflation forecast5.0%
  • Repo-rate decision was unanimous.
  • GDP forecast increased from 6.6% → 6.7%.
  • Inflation forecast reduced from 5.1% → 5.0%.
  • RBI also released draft guidelines for on-tap licensing of Urban Cooperative Banks (UCBs).
  • On-tap licensing means eligible entities can apply for a licence continuously rather than during a fixed application window.

🔥 Prelims Memory Trick

Repo 5.25 → SDF 5.00 → MSF/Bank 5.50

📝 Relevant Exams: UPSC
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