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RBI increases repo rate by 50 bps to 4.90 per cent, know what impact it will have on your home loan EMIs

RBI governor Shaktikanta Das announced an increase in the repo rate by 50 basis points and this is likely to have direct impact on the pocket of EMI holders.

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Shaktikanta Das

In the Reserve Bank of India’s conclusion meeting of Monetary Policy, the RBI governor Shaktikanta Das announced an increase in the repo rate by 50 basis points. This increase is happening for the second time in five weeks. With this, now the RBI has increased the repo rate to 4.90 per cent.

As the repo rate has increased, will it have a direct impact on people who have EMIs? Yes, as the repo rate hike will make EMIs costlier. The increase in repo rate has a direct impact on interest rates on house loans, car loans, and personal loans.

What impact does the increase in repo rate have on EMI holders?

When the RBI’s policy rate increases due to this there is a higher cost of funds for banks. And, because of this, banks also raise interest rates and that directly impacts the pocket of the EMI holder and the monthly instalment also gets costlier because of this.

Read Also: Lucknow: Teenager killed mother over stopping him from playing mobile game, used air freshener for 2 days to hide foul smell

The RBI has been increasing the repo rate to tackle inflationary pressure. RBI governor Das also said that India’s recovery has also gained momentum and the withdrawal of accommodation started during the pandemic.

He also said that inflation has steeply increased much beyond the tolerance level. The process of recovery in emerging market economies is also getting affected. But the Indian economy has remained resilient. Das further said that they have started a gradual withdrawal of the extraordinary accommodation. RBI will continue to be proactive and decisive in mitigating the fallout of the geopolitical crises on our economy. Their steps will be measured and calibrated.

Das said that the RBI will remain focused on bringing down inflation with the target. He also talked about the geopolitical situation and said that the ongoing war has turned out to be a dampener on global trade and growth. Domestic economic activity is gaining traction while inflation pressures have intensified faster. Inflationary pressures have become broad-based and remain largely driven by supply shocks.

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India News

Jammu and Kashmir High Court rejects Mehbooba Mufti’s plea on undertrial prisoners, calls it politically motivated

The Jammu and Kashmir High Court has rejected Mehbooba Mufti’s PIL on undertrial prisoners, stating it was politically motivated and lacked factual basis.

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Mehbooba mufti

The Jammu and Kashmir High Court has dismissed a Public Interest Litigation (PIL) filed by People’s Democratic Party (PDP) president Mehbooba Mufti seeking the transfer of undertrial prisoners lodged in jails outside the Union Territory back to prisons within Jammu and Kashmir. The court termed the petition politically motivated, vague and unsupported by facts, observing that it was an attempt to derive political mileage rather than address a genuine public cause.

A bench headed by Chief Justice Arun Palli and Justice Rajnesh Oswal made it clear that public interest litigation cannot be used as a tool to advance political agendas or convert courts into platforms for electoral positioning.

Court says PIL cannot become a political platform

In its observations, the High Court said the plea appeared aimed at projecting the petitioner as a champion of justice for a specific section, rather than raising substantiated legal concerns. The bench underlined that while political parties are free to engage with voters through democratic means, the judiciary must remain insulated from political campaigns.

The court reiterated that PIL jurisdiction is meant to safeguard public interest and not to be misused for electoral gain or political leverage. It cautioned against attempts to draw the judiciary into political narratives.

Undertrials have legal remedies, says court

In the 15-page order passed on Tuesday, the High Court noted that the undertrial prisoners mentioned in the petition are already facing trial before competent courts. According to the bench, adequate judicial remedies are available to such undertrials to raise grievances related to their detention or place of incarceration.

The court further observed that the failure of the concerned undertrials to approach courts on their own indicated that they may not be genuinely aggrieved by their confinement in prisons outside the Union Territory.

No locus standi, petition dismissed

Dismissing the plea, the High Court held that Mehbooba Mufti was a third-party stranger to the cause and therefore lacked the locus standi to invoke the court’s jurisdiction in this matter. The petition was described as misconceived and was rejected accordingly.

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Thackeray cousins reunite for Mumbai civic polls, announce Shiv Sena UBT–MNS alliance

Uddhav and Raj Thackeray have reunited after two decades, announcing a Shiv Sena–MNS alliance for the upcoming BMC elections with a focus on Marathi identity.

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Shiv sena ubt mns alliance

The long political estrangement between Uddhav Thackeray and Raj Thackeray has ended, with the cousins formally announcing an alliance for the upcoming Brihanmumbai Municipal Corporation (BMC) elections. The joint decision marks a significant shift in Mumbai’s civic politics, placing Marathi identity at the centre of the campaign.

At a joint press conference, Raj Thackeray declared that the Shiv Sena and Maharashtra Navnirman Sena (MNS) would contest the local body elections together. He asserted that Mumbai would get a Marathi mayor, adding that the mayor would come from the Shiv Sena–MNS alliance. Uddhav Thackeray, seated alongside him, echoed the confidence, stating that Mumbai would remain with them “come what may”.

Focus on unity and Marathi identity

Uddhav Thackeray underlined the importance of unity, invoking the slogan “batenge toh katenge” to warn against division. Raj Thackeray said the alliance would work to ensure that Marathi people get what they want, reinforcing the emphasis on regional identity that once defined the politics shaped by Shiv Sena founder Bal Thackeray.

The cousins, who have come together after nearly two decades, also appealed to leaders and workers unhappy with the Shiv Sena faction aligned with the BJP to join their front. The message was aimed at consolidating forces opposed to the ruling coalition in the state.

Seat-sharing and poll preparations

Elections to the BMC are due within a month, with voting scheduled for January 15. Political parties have already begun preparations for a high-intensity campaign to gain control of the country’s richest municipal body.

Uddhav Thackeray said that seat-sharing arrangements for Mumbai, Nashik and other municipal bodies have been finalised, though details were not disclosed. Sources indicated that the Shiv Sena faction led by Uddhav Thackeray could contest around 145–150 seats, while the MNS may field candidates in 65–70 seats. The remaining seats are expected to be contested by allies, including a faction of the NCP.

Strategic reunion against rivals

The alliance shifts the political narrative from disputes over the “real Sena” to a united front led by the Thackeray family, signalling continuity with Bal Thackeray’s legacy. Party leaders described the reunion as a moment of significance for Marathi voters and Maharashtra.

The combination brings together Uddhav Thackeray’s support among traditional Sena loyalists and Raj Thackeray’s appeal among younger voters, positioning the alliance as a key challenger in the civic polls. Raj Thackeray’s return to the fold is also expected to consolidate the Marathi vote bank that had earlier moved towards the MNS, impacting rival formations in Mumbai.

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Nitin Gadkari flags Delhi air pollution, says two-day stay causes infection

Union minister Nitin Gadkari says spending two days in Delhi leads to infection, flags fossil fuel use as a major cause of pollution and calls for alternative energy solutions.

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Union Minister Nitin Gadkari

Delhi’s worsening air quality has drawn sharp criticism from within the ruling BJP, with Union minister Nitin Gadkari saying that even a brief stay in the national capital affects his health.

Speaking at a public event in Delhi, Gadkari remarked that spending just two days in the city results in an infection, raising questions over why the capital continues to struggle with severe pollution levels. His comments come at a time when the Air Quality Index has remained in the ‘very poor’ and ‘severe’ categories for weeks.

The Union minister, who handles the road transport and highways portfolio, acknowledged that the transport sector plays a major role in pollution. He said around 40 per cent of pollution is linked to fossil fuel usage and pointed out that India spends nearly Rs 22 lakh crore on importing fossil fuels, which also contributes to environmental damage.

Gadkari pushes for alternative fuels and exports

Gadkari stressed that promoting alternative fuel and biofuel technologies should be seen as a form of true nationalism. He argued that reducing imports and increasing exports would strengthen the country economically while also addressing pollution. According to him, resistance to eco-friendly technologies remains a major hurdle despite their long-term benefits.

Remarks on communal issues and secularism

During the same address, Gadkari said it was incorrect to label every Muslim as a terrorist, emphasising that there are varying degrees of extremism. He cited former President A P J Abdul Kalam as a national icon and underlined the importance of education, especially among marginalised sections.

He further claimed that Hindu-Muslim tensions in the country are a result of vote bank politics pursued by the Congress. Defining secularism as “justice for all”, Gadkari said policies driven by electoral considerations had created divisions. He asserted that Indian culture is neither communal nor casteist and described Hindutva as tolerant and inclusive.

Reiterating views earlier expressed by former prime minister Atal Bihari Vajpayee, Gadkari said India was, is, and will remain a secular country, rooted in its cultural traditions that advocate welfare for all.

Political reactions over pollution issue

The BJP-led governments at the Centre and in Delhi have faced criticism over their handling of air pollution. Congress leader Imran Masood responded to Gadkari’s remarks by saying that the minister had at least acknowledged the seriousness of the problem. He added that pollution cannot be attributed only to vehicles, noting that similar vehicles operate outside Delhi as well.

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