{"id":5197,"date":"2026-07-03T19:17:53","date_gmt":"2026-07-03T13:47:53","guid":{"rendered":"https:\/\/yourcareerheights.com\/?p=5197"},"modified":"2026-07-16T19:56:50","modified_gmt":"2026-07-16T14:26:50","slug":"rbis-bi-monthly-monetary-policies-from-december-25-june-2026","status":"publish","type":"post","link":"https:\/\/yourcareerheights.com\/?p=5197","title":{"rendered":"RBI’s Bi-Monthly Monetary Policies from December 25 – June 2026"},"content":{"rendered":"

RBI's Bi-monthly Policy Key highlights from December 2025 to June 2026<\/h3>\n
\n\t

\"\"<\/a><\/p>\n

Key highlights of the RBI\u2019s MPC meeting in December 2025<\/h2>\n

The key highlights of the RBI\u2019s Monetary Policy Committee (MPC) meeting, December 3-5, 2025, are as follows:<\/p>\n

    \n
  • Repo rate under the Liquidity Adjustment Facility (LAF) reduced to 5.25%.<\/li>\n
  • Standing Deposit Facility (SDF) rate adjusted to 5.00%.<\/li>\n
  • Marginal Standing Facility (MSF) rate and Bank Rate adjusted to 5.50%.<\/li>\n<\/ul>\n

    Penal Interest on shortfall in CRR and SLR requirements & Standing Liquidity Facility for PDs<\/h3>\n

    All penal interest rates on shortfall in Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements, (which are specifically linked to Bank Rate), revised to Bank Rate plus 3.0 percentage points (8.50%) or Bank Rate plus 5.0 percentage points (10.50%). Standing Liquidity Facility provided to Primary Dealers (PDs) (collateralised liquidity support) available at the revised repo rate of 5.25% with immediate effect.<\/p>\n

    RBI revised the definition of \u2018Fortnight\u2019<\/h3>\n

    RBI has amended the Banking Laws (Amendment) Act, 2025 relating to maintenance of CRR and SLR. As per the revisions, the definition of \u2018Fortnight\u2019 has been amended from \u201cthe period from Saturday to the second following Friday, both days inclusive\u201d to \u201cthe period from the first day to the fifteenth day of each calendar month or sixteenth day to the last day of each calendar month, both days inclusive\u201d. The enactment date of the stated definition of fortnight is December 15, 2025.<\/p>\n

    RBI revised norms for Undertaking of Financial services <\/strong><\/p>\n

    The RBI has amended the guidelines for Undertaking of Financial Services for Commercial Banks, SFBs, PBs, NBFCs and Non-Operative Financial Holding Companies. These Directions, came into effect from December 05, 2025, stated that Mutual fund business, insurance business, pension fund management, investment advisory and management services, portfolio management services and broking services by commercial banks and SFBs shall only be carried out through a group entity \u2013 not departmentally. Also, an aggregate investment of less than 20% (with or without investment by the bank) in the equity share capital of an entity can be made by a bank group without prior approval. However, this also shall be subject to the bank\u2019s Capital to Risk-Weighted Asset Ratio (CRAR) not being less than the minimum prescribed capital (including Capital Conservation Buffer) post-investment; and the bank reporting net profit in both the preceding two financial years.<\/p>\n

    Key highlights of the RBI\u2019s Monetary Policy Committee (MPC) meeting from February 4 to 6, 2026<\/h3>\n
      \n
    • Repo rate remains at 5.25%.<\/li>\n
    • Standing Deposit Facility (SDF) rate remains at 5.00%.<\/li>\n
    • Marginal Standing Facility (MSF) rate and Bank Rate remains at 5.50%.<\/li>\n<\/ul>\n

      Cracking Down on Mis-selling<\/strong><\/p>\n

      Finance Minister Ms. Nirmala Sitharaman directed banks to focus on core banking functions \u2013 deposits and lending \u2013 and immediately curb the aggressive selling of third-party products, including, insurance. Mis-selling has been classified as an offence under the Bharatiya Nyaya Sanhita.<\/p>\n

      Key highlights of Statement on Developmental and Regulatory Policies<\/strong><\/p>\n

        \n
      • The comprehensive instructions to Regulated Entities (REs) on advertising, marketing and sales of financial products and services to be issued to prevent mis-selling.<\/li>\n
      • Instructions on various aspects of loan recovery, including engagement of recovery agents, to be reviewed and harmonised.<\/li>\n
      • The instructions on the framework for compensation in case of small value fraudulent transactions will be issued.<\/li>\n
      • Proposed to allow commercial banks to extend finance to Real Estate Investment Trusts (REITs), with prudential safeguards.<\/li>\n
      • The rationalisation of the extant regulatory norms applicable for unsecured loans by Urban Co-operative Banks (UCBs); limits for lending to nominal members; and the tenor and moratorium requirements for housing loans, has been proposed.<\/li>\n
      • Eligible Non-Banking Financial Companies (NBFCs) not availing public funds and not having customer interface (including Type I NBFCs) proposed to be exempt from registration.<\/li>\n
      • It is proposed to dispense with the requirement of prior approval for opening branches by NBFC - Investment and Credit Companies.<\/li>\n
      • A Discussion Paper on \u201cExploring safeguards in digital payments to curb frauds\u201d, to be issued.<\/li>\n
      • Lead Bank Scheme to be revised to enhance its effectiveness.<\/li>\n
      • The guidelines of Kisan Credit Card (KCC) to be revised to expand coverage.<\/li>\n
      • The guidelines relating to use of Business Correspondents (BCs) by banks, to be revised.<\/li>\n
      • The limit of collateral-free loans to Micro and Small Enterprises (MSEs) to be revised from \u20b910 lakh to \u20b920 lakh to improve their access to formal credit and support their entrepreneurial activity.<\/li>\n
      • A regulatory framework to enable the introduction of derivatives on credit indices and total return swaps on corporate bonds has been proposed.<\/li>\n
      • Authorised Dealers (ADs) to get greater flexibility vis-\u00e0-vis foreign exchange products, risk management and platforms.<\/li>\n
      • Investments under the Voluntary Retention Route (VRR) shall now be reckoned under the limit for Foreign Portfolio Investors (FPI) investments under the General Route. FPIs investing under VRR shall get certain additional operational flexibilities.<\/li>\n
      • Mission SAKSHAM (Sahakari Bank Kshamta Nirman) - a sector-wide capacity-building and certification framework proposed for UCBs.<\/li>\n<\/ul>\n

        The key highlights of Monetary Policy Committee meeting held from April 06-08, 2026<\/strong><\/h3>\n

        The key highlights of the meeting are as follows:<\/p>\n

          \n
        • Repo Rate unchanged at 5.25%.<\/li>\n
        • Standing Deposit Facility (SDF) rate unchanged at 5.00%.<\/li>\n
        • Marginal Standing Facility (MSF) rate and the Bank Rate unchanged at 5.50%.<\/li>\n<\/ul>\n

          Statement on Developmental and Regulatory Policies: Key highlights<\/h3>\n
            \n
          • Guidelines of commercial banks to be reviewed for including Quarterly Profits in Capital to Risk-weighted Assets Ratio (CRAR) computation.<\/li>\n
          • It is proposed to dispense with the Investment Fluctuation Reserve (IFR) requirement for commercial banks (including Local Area Banks, but excluding Small Finance Banks, Payment Banks and Regional Rural Banks) maintaining capital charge for market risk and also follow revised norms on classification, valuation and operation of investment portfolio.<\/li>\n
          • Matters to be placed before the Boards for approval, review or information will go through comprehensive review and rationalization by RBI.<\/li>\n
          • To consolidate its supervisory framework, the apex bank has drafted 64 Master Directions consolidating extant supervisory instructions on up to nine functional areas.<\/li>\n
          • Requirement of due diligence of MSMEs while onboarding on Trade Receivables Discounting System (TReDS) platforms proposed to be removed to promote ease of business.<\/li>\n
          • To enhance participation and liquidity in the term money market segment, the participant base will now also include non-bank participants viz., AIFIs, NBFCs, including HFCs, companies etc. Borrowing limit for standalone primary dealers in this segment will also be increased.<\/li>\n<\/ul>\n

            RBI works to secure digital transactions<\/h3>\n

            The RBI\u2019s Directions on Digital Payments E-mandate framework, 2026, focusses on securing recurring digital transactions across various payments system. Enforced with immediate effect, the guidelines have mandated an Additional Factor of Authentication (AFA) for customers before processing first digital transactions. Issuers must send a pre-transaction notification at least 24 hours before the actual charge\/debit. No AFA will be required to authorise recurring transactions up to Rs. 15,000. Insurance premiums, mutual fund subscriptions and credit card bill payments up to \u20b91,00,000\/- per transaction can be made without AFA. Customer will not be charged anything for availing the e-mandate facility for recurring transactions.<\/p>\n

            Key highlights of Monetary Policy Committee meeting held from June 03-05, 2026<\/strong><\/h3>\n

            The Reserve Bank of India\u2019s (RBI\u2019s) Monetary Policy Committee (MPC) meeting held from June 03-05, 2026.<\/p>\n

            The key highlights of the meeting are as follows:<\/p>\n

              \n
            • Repo Rate unchanged at 5.25%.<\/li>\n
            • Standing Deposit Facility (SDF) rate unchanged at 5.00%.<\/li>\n
            • Marginal Standing Facility (MSF) rate and the Bank Rate unchanged at 5.50%.<\/li>\n<\/ul>\n

              RBI removed IFR requirement for banks that maintain market risk capital<\/h3>\n

              The RBI has removed the Investment Fluctuation Reserve (IFR) requirement, while allowing existing IFR balances to be transferred \u2018below the line\u2019 to Statutory Reserve, General Reserve or Balance of Profit & Loss Account. For Regulated Entities continuing under the IFR framework \u2014 including Urban Co-operative Banks, Small Finance Banks, Payments Banks and Regional Rural Banks \u2014the minimum IFR requirement will now be assessed only on balance sheet dates rather than on a continuous basis. For a foreign bank operating in India in via branches, the balance in IFR shall be transferred directly to \u2018statutory reserves kept in Indian books\u2019 or \u2018remittable surplus retained in Indian books which is not repatriable so long as the bank functions in India\u2019.<\/p>\n

              source: IIBF<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"

              RBI’s Bi-Monthly Policy highlights from December 2025 to June 2026<\/p>\n","protected":false},"author":1,"featured_media":1223,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,339,548,722,10,65,936,323,337,45,338],"tags":[3,35,64,183,624,40],"class_list":["post-5197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","category-crr","category-developmental-and-regulatory-policy","category-economic-reforms","category-economy","category-monetary-policy","category-monetary-policy-committee-mpc","category-mpc","category-policy-rates","category-rbi","category-slr","tag-banking","tag-economy","tag-monetary-policy","tag-monetary-policy-committeempc","tag-monetary-policy-review","tag-rbi"],"_links":{"self":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/5197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5197"}],"version-history":[{"count":1,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/5197\/revisions"}],"predecessor-version":[{"id":5198,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/5197\/revisions\/5198"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/media\/1223"}],"wp:attachment":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}