RBI Keeps Repo Rate at 5.25%, Boosts GDP Forecasts and MSME Loans

• RBI maintains benchmark lending rates, with the repo rate at 5.25%, and keeps its monetary policy stance neutral.
• GDP growth projections for Q1 and Q2 of FY27 are revised upwards to 6.9% and 7% respectively, supported by GST reforms and monetary easing.
• Retail inflation for the current fiscal is projected at 2.1%, with CPI inflation for Q1 and Q2 of FY27 at 4% and 4.2%.
• RBI announces doubling of collateral-free loan limit for MSMEs to Rs 20 lakh and measures to protect senior citizens from digital frauds.
• India's forex reserves stand at USD 723.8 billion; banks will be allowed to lend to REITs, and NBFC branch opening norms will be relaxed.