Tag: RBI

Industry

RBI issues project finance norms for banks, NBFCs

MUMBAI: The Reserve Bank on Thursday issued norms to provide a harmonised framework for financing of projects in infrastructure and non-infrastructure sectors by banks, NBFCs and other regulated entities. The Reserve Bank of India (Project Finance) Directions, 2025 lay down the revised regulatory treatment upon change in the ‘date of commencement of commercial operations’ (DCCO) of such projects in the backdrop of a review of the extant instructions and analysis of the risks inherent in such financing. The RBI said the directions entail the adoption of a principle-based regime for resolution of stress in project finance exposures, harmonised across regulated…

Housing Finance

Bank of Maharashtra slashes retail loan rate by up to 50 bps

NEW DELHI: State-owned Bank of Maharashtra on Thursday said it has reduced its interest rate by up to 50 basis points on retail loans, including home, car, education and other loans linked with Repo Linked Lending Rate. The interest rate reduction by Pune-based lender is in line with the rate moderation done by RBI last week and the new rates are effective from June 10. With the rate cut, its home loan now starts from 7.35 per cent and car loan from 7.7 per cent, which is among the lowest interest rates in the banking industry, BoM said in a…

Industry

RBI’s 50 bps rate cut sparks optimism across real estate sector

NEW DELHI: The Reserve Bank of India (RBI) on Friday slashed the repo rate by 50 basis points to 5.5%, the lowest level in three years. This marks the third consecutive rate cut in 2025, bringing the cumulative reduction to 100 basis points since February. Alongside the rate cut, the central bank also reduced the cash reserve ratio (CRR) by 100 bps, unlocking ₹2.5 lakh crore worth of liquidity in the system. Sanjay Malhotra, governor, RBI said the monetary policy committee (MPC) took the decision after a comprehensive review of macroeconomic indicators and financial developments. The central bank aims to…

Industry

RBI cuts CRR by 1%, to unlock ₹2.5 lakh crore to bank funds by December 2025

MUMBAI: The Reserve Bank on Friday decided to cut Cash Reserve Ratio (CRR) by a huge 1 per cent, which will unlock Rs 2.5 lakh crore liquidity to the banking system for lending to productive sectors of the economy. With the reduction in four equal tranches ending November 29, 2025, the CRR would come down to 3 per cent. This means that the commercial banks would have to maintain a lower level of 3 per cent in liquid cash form with the RBI allowing them to have higher funds for lending. The last massive similar CRR cut of 1 per…

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Reserve Bank of India cuts repo rate by 50 bps

MUMBAI: The Reserve Bank of India (RBI) cut its key repo rate by a larger-than-expected 50 basis points on Friday, a third consecutive reduction, as muted inflation provided space for policymakers to focus on supporting economic growth. The Monetary Policy Committee (MPC), which consists of three RBI officials and three external members, cut the repo rate to 5.50%. It has now cut rates by 100 basis points in 2025, starting with a quarter-point reduction in February, its first cut since May 2020. It made a similar-sized cut in April. Inflation has softened significantly, RBI Governor Sanjay Malhotra said, adding that…

Housing Finance

Bank of Baroda cuts home loan rates by 40 bps for new borrowers

Bank of Baroda has reduced interest rate on home loans by 40 basis points for new borrowers. The new rate now starts from 8.00% per annum compared to 8.40% earlier. The revised rates, linked to a borrower’s credit score, are applicable on new home loans as well as on home improvement loans. Home loans of ₹15 lakh and above are eligible for the new rates, the bank said in a press release. Bank of Baroda is offering a concession of 0.05% per annum for women borrowers and 0.10% per annum for borrowers below 40 years of age, on ready properties,…