📊 Current Policy Rates (April 2026)
Latest RBI Monetary Policy rates as per the 59th MPC Meeting (April 2026).
Current Policy Rates (April 2026)
The Reserve Bank of India (RBI) periodically reviews its monetary policy to manage inflation and support economic growth. These reviews are conducted by the Monetary Policy Committee (MPC), a statutory body established under the RBI Act, 1934, which sets the benchmark interest rates that flow through the entire economy.
Latest MPC Meeting (60th Meeting)
The MPC meets at least four times a year — typically once every two months. Each meeting results in a formal resolution on interest rates. The most recent gathering resulted in the 60th MPC Resolution, setting the current economic tone.
Meeting Date: April 6–8, 2026
Chaired by: Shri Sanjay Malhotra, Governor, RBI
MPC Members Present
The committee consists of 6 members: three officials from the RBI and three external experts nominated by the Government of India. This balanced composition ensures that both the central bank's technocratic perspective and broader economic expertise from outside RBI are considered when setting policy.
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Current Policy Rates (April 2026)
The Reserve Bank of India (RBI) periodically reviews its monetary policy to manage inflation and support economic growth. These reviews are conducted by the Monetary Policy Committee (MPC), a statutory body established under the RBI Act, 1934, which sets the benchmark interest rates that flow through the entire economy.
Latest MPC Meeting (60th Meeting)
The MPC meets at least four times a year — typically once every two months. Each meeting results in a formal resolution on interest rates. The most recent gathering resulted in the 60th MPC Resolution, setting the current economic tone.
Meeting Date: April 6–8, 2026
Chaired by: Shri Sanjay Malhotra, Governor, RBI
MPC Members Present
The committee consists of 6 members: three officials from the RBI and three external experts nominated by the Government of India. This balanced composition ensures that both the central bank's technocratic perspective and broader economic expertise from outside RBI are considered when setting policy.
| Name | Designation |
|---|---|
| Shri Sanjay Malhotra | Governor, RBI (Chairman) |
| Dr. Nagesh Kumar | Director & CEO, Institute for Studies in Industrial Development, New Delhi |
| Shri Saugata Bhattacharya | Economist, Mumbai |
| Prof. Ram Singh | Director, Delhi School of Economics, Delhi |
| Dr. Poonam Gupta | Deputy Governor (Monetary Policy) |
| Shri Indranil Bhattacharyya | Executive Director (Nominated by Central Board) |
Current Policy Rates (w.e.f. April 2026)
These rates dictate the cost of borrowing and lending in the economy. A decrease in the repo rate generally aims to stimulate the economy by making loans cheaper, encouraging spending and investment. Conversely, an increase aims to curb inflation by making borrowing more expensive, reducing excess money supply.
| Rate | Current Value | Change |
|---|---|---|
| Repo Rate | 5.25% | Unchanged (held steady) |
| SDF Rate | 5.00% | Repo − 0.25% |
| MSF Rate | 5.50% | Repo + 0.25% |
| Bank Rate | 5.50% | Repo + 0.25% |
| CRR | 3.00% | Unchanged (cut 100bps Jun 25) |
| SLR | 18.00% | Unchanged |
| Stance | Neutral | Unchanged |
💡 Quick Memory Rule: All rates are anchored to the Repo Rate. SDF = Repo − 0.25%. MSF = Bank Rate = Repo + 0.25%. Knowing the Repo Rate lets you derive the others instantly.
Key Highlights of 60th MPC Resolution
- Unanimous Hold: The MPC voted unanimously to keep the policy repo rate unchanged at 5.25%. This is the second consecutive hold (after February 2026), following a 125 bps cumulative cut from February 2025 to December 2025. The hold reflects caution amid the West Asia/Iran conflict and volatile crude oil prices that threaten inflation stability.
-
Rate Corridor: The RBI operates within a "corridor" to effectively manage daily liquidity (the amount of money flowing through the banking system). The gap between the highest borrowing cost and the lowest deposit return forms this corridor, preventing money market rates from straying too far from the policy rate.
- Floor (SDF) — 5.00%: The Standing Deposit Facility (SDF) is the absolute minimum rate the RBI will pay banks to park their excess cash overnight. It acts as the floor — no market rate should sustainably fall below this.
- Policy Rate (Repo) — 5.25%: The Repo Rate is the benchmark central rate at which RBI lends short-term money to commercial banks. It sits precisely in the middle of the corridor.
- Ceiling (MSF / Bank Rate) — 5.50%: The Marginal Standing Facility (MSF) and the Bank Rate serve as the maximum/penalty rate for banks seeking emergency overnight funds from RBI. No market rate should sustainably rise above this ceiling.
- Stance — Neutral: The MPC decided to continue with the neutral stance. A "neutral" stance implies that the RBI has the flexibility to either increase or decrease rates in the future, depending entirely on incoming economic data. It is a deliberate signal that the Committee is not pre-committing to a singular directional path — they will be data-driven.
- Economic Projections (FY27):
- CPI Inflation projection: 4.6% (close to the 4% target with ±2% tolerance band)
- Core Inflation (excl. food & fuel): 4.4%
- GDP growth projection: 6.9% — moderation from previous projections amid global headwinds and rising input costs.
- Publication Rule (Section 45ZL): Transparency is a critical part of modern monetary policy. As per Section 45ZL of the RBI Act, 1934, MPC minutes are published on the 14th day after the conclusion of the meeting. These minutes include:
- Resolution adopted — the official decisions made by the Committee
- Vote of each member — ascribed individually to each member, ensuring public accountability
- Individual statements of members — explaining the rationale and economic reasoning behind each member's vote
2025-26 Rate Cut Timeline
The current 5.25% repo rate is the result of a 125 bps easing cycle that began in February 2025:
| Meeting | Date | Action | Repo After |
|---|---|---|---|
| 53rd MPC | Feb 2025 | -25 bps | 6.25% |
| 54th MPC | Apr 2025 | -25 bps | 6.00% |
| 55th MPC | Jun 2025 | -50 bps + CRR cut 100 bps; stance changed to Neutral | 5.50% |
| 58th MPC | Dec 2025 | -25 bps | 5.25% |
| 59th MPC | Feb 2026 | Held | 5.25% |
| 60th MPC | Apr 2026 | Held (current) | 5.25% |
Total cuts: 125 bps (6.50% → 5.25%) since February 2025. The June 2025 meeting also delivered a major CRR cut from 4% to 3% (100 bps).
Exam Tips
💡 Remember:
- The 59th MPC meeting was held on April 6–8, 2026
- Repo Rate = 5.25% (held — 2nd consecutive hold)
- SDF = Repo − 0.25% = 5.00% (floor of the corridor)
- MSF = Bank Rate = Repo + 0.25% = 5.50% (ceiling of the corridor)
- CRR = 3.00% (cut by 100 bps in June 2025)
- SLR = 18.00%
- Stance: Neutral
- 2025-26 cumulative rate cut: 125 bps (6.50% → 5.25%)
- CPI Inflation FY27 projection: 4.6% | GDP growth FY27 projection: 6.9%
- MPC has 6 members — 3 from RBI + 3 nominated by Government
- Sanjay Malhotra is the current RBI Governor (Chairman of MPC)
- MPC minutes are published 14 days after the meeting, under Section 45ZL of the RBI Act, 1934
Reference
Source: Minutes of the 59th Monetary Policy Committee Meeting, April 6 to 8, 2026 (Under Section 45ZL of the Reserve Bank of India Act, 1934). RBI Official Statements: rbi.org.in/scripts/annualpolicy.aspx
Summary Cheat Sheet
| Concept / Topic | Key Details / Explanation |
|---|---|
| Monetary Policy Committee (MPC) | Statutory body under RBI Act, 1934; sets benchmark interest rates; meets at least 4 times a year |
| MPC Composition | 6 members — 3 RBI officials + 3 external experts nominated by the Government of India |
| 59th MPC Meeting | Held April 6–8, 2026; chaired by Shri Sanjay Malhotra (RBI Governor) |
| Repo Rate | 5.25% — the benchmark rate at which RBI lends short-term money to commercial banks; sits at the centre of the rate corridor |
| Standing Deposit Facility (SDF) | 5.00% (Repo − 0.25%) — floor of the corridor; minimum rate RBI pays banks to park excess cash overnight |
| Marginal Standing Facility (MSF) | 5.50% (Repo + 0.25%) — ceiling of the corridor; penalty rate for emergency overnight borrowing from RBI |
| Bank Rate | 5.50% — same as MSF (Repo + 0.25%) |
| CRR | 3.00% — cut by 100 bps in June 2025 from 4% |
| SLR | 18.00% — unchanged |
| Quick Memory Rule | All rates anchored to Repo: SDF = Repo − 0.25%, MSF = Bank Rate = Repo + 0.25% |
| Rate Corridor | Band between SDF (floor) and MSF (ceiling) used to manage daily liquidity in the banking system |
| MPC Vote (59th Meeting) | Unanimous (all 6 members) to hold the repo rate — second consecutive hold |
| Policy Stance | Neutral — RBI retains flexibility to raise or lower rates based on incoming economic data; no pre-commitment to a direction |
| 2025-26 Easing Cycle | 125 bps cumulative cut (6.50% → 5.25%) across 4 meetings (Feb, Apr, Jun, Dec 2025); paused since Feb 2026 |
| CPI Inflation projection (FY27) | 4.6% (Core: 4.4%) — close to 4% target with ±2% tolerance band |
| GDP growth projection (FY27) | 6.9% — moderation amid global headwinds |
| Section 45ZL (RBI Act, 1934) | MPC minutes must be published on the 14th day after the meeting; includes resolution, individual votes, and member statements |
| Current RBI Governor | Shri Sanjay Malhotra (Chairman of MPC) |
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