Repo rate
The interest rate at which the Reserve Bank of India lends short-term funds to commercial banks against government securities; the principal instrument of monetary policy under the Liquidity Adjustment Facility.
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Current affairsIndia's GDP Grows 7.8% in Q1 FY2026-27: Manufacturing and Services Drive Expansion, Beats RBI ForecastIndia's real GDP grew 7.8% in Q1 FY2026-27 (April–June 2026), as per MoSPI data released on 31 August 2026, surpassing both the RBI's 7% estimate and a Reuters poll forecast of 7.1%. Nominal GDP rose 10.3% to ₹88.27 lakh crore, driven by strong manufacturing (9.2%), financial services (12.1%), and construction (7.7%) growth. Current affairsThree New Part-Time Directors on RBI Central Board: Annie George Mathew, Janmejaya Kumar Sinha, Syed Akbaruddin — RBI Governance and the Central Board's RoleThe Government of India appointed Annie George Mathew (former Special Secretary, Ministry of Finance), Janmejaya Kumar Sinha (Chairman, BCG India), and Syed Akbaruddin (former Permanent Representative to the UN, now Dean of Kautilya School of Public Policy) as part-time non-official directors on the RBI Central Board for four-year terms effective August 24, 2026. Former ISRO chief S. Somnath and industrialist Anand Mahindra were also appointed/re-appointed to the board in the same round. Current affairsRBI MPC August 2026: Repo Rate Unchanged at 5.25%, Neutral Stance Retained — GDP Forecast Raised to 6.7%The Reserve Bank of India's Monetary Policy Committee (MPC) unanimously voted 6-0 to keep the policy repo rate unchanged at 5.25% in its 62nd meeting (August 3–5, 2026), retaining the 'Neutral' stance. The GDP growth forecast for FY 2026-27 was raised to 6.7%, while the CPI inflation projection was lowered to 5.0% (from 5.1% at the June 2026 meeting). Current affairsPSB Confluence 2026: High-Powered Banking Reforms Committee for Viksit Bharat — Deposit Mobilisation, Youth Banking, and GCC StrategyThe Department of Financial Services (DFS), Ministry of Finance, hosted the PSB Confluence 2026 in New Delhi on August 17–18, bringing together 125 senior leaders of Public Sector Banks and Public Financial Institutions. Finance Minister Nirmala Sitharaman called for actionable banking reforms under seven themes to feed into a proposed High-Powered Committee on Banking for Viksit Bharat.
In previous-year questions
- At its August 2026 meeting, the RBI Monetary Policy Committee (MPC) kept the policy repo rate unchanged at 5.25% and retained the Neutral stance. It also revised the FY 2026-27 GDP growth forecast. To what figure was it revised?UPSC · Current Affairs
- The Standing Deposit Facility (SDF) in India's monetary policy framework was introduced in April 2022. Which of the following correctly describes its role in the RBI's Liquidity Adjustment Facility (LAF) corridor?UPSC · Current Affairs
- Which of the following correctly describes the role of the RBI Central Board in relation to India's monetary policy?UPSC · Current Affairs