RBI Maintains Repo Rate at 6.5% in June 2026 Policy Review
2026-06-05Background: The Reserve Bank of India (RBI) uses the repo rate as a primary tool to control inflation and liquidity. Current Context: In the June 2026 Monetary Policy Committee (MPC) meeting, the RBI decided to keep the repo rate unchanged at 6.5%. This decision reflects the central bank's commitment to aligning inflation with the 4% target. Impact: By maintaining the status quo, the RBI aims to support sustainable economic growth while ensuring that price stability remains intact, providing predictability to the banking sector and retail borrowers.
Expansion of Digital Rupee (e-Rupee) for Merchant Transactions
2026-06-05Background: The RBI launched the Central Bank Digital Currency (CBDC), known as the Digital Rupee, to provide a safe, digital alternative to physical cash. Current Context: As of June 2026, the RBI has introduced new interoperability features between the Digital Rupee and UPI QR codes to boost merchant adoption. Impact: This integration allows small merchants to accept digital currency payments seamlessly without needing complex infrastructure. It is expected to reduce the cost of cash management for businesses and enhance the efficiency of the retail payment ecosystem across the country.
