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RBI cuts repo rate to 5.25%, paving the way for cheaper loans

The RBI has cut the repo rate to 5.25%, aiming to support growth as inflation softens. The central bank also raised GDP projections and announced liquidity-boosting measures.

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Reserve Bank of India

The Reserve Bank of India (RBI) reduced the key repo rate by 25 basis points to 5.25% on Thursday, signalling relief for borrowers as banks are expected to offer lower EMIs on home and vehicle loans. Governor Sanjay Malhotra announced the move after the conclusion of the three-day Monetary Policy Committee (MPC) meeting.

RBI prioritises growth as inflation eases

Malhotra said the decision was unanimous, with the central bank choosing to focus on supporting economic momentum despite concerns over a weak rupee. The repo rate was earlier cut in June from 6% to 5.5% amid easing inflation trends.

The RBI now projects Consumer Price Index (CPI) inflation at 2% for FY2025-26, significantly softer than earlier estimates. For the first quarter of FY2026-27, inflation is expected at 3.9%, lower than the previous projection. The governor noted that rising precious metal prices may contribute to the headline CPI, but overall risks to inflation remain balanced.

GDP outlook strengthened

In a strong upward revision, the central bank increased the GDP forecast for the current financial year to 7.3%, previously estimated at 6.8%. Growth for the October–December quarter has also been revised to 6.7%.

The last quarter registered a six-quarter high expansion of 8.2%, reflecting resilient demand and steady credit flow.

“The growth-inflation balance continues to offer policy space,” Malhotra said, reiterating that the RBI’s stance remains neutral.

Other key decisions

Alongside the repo rate cut, the RBI announced adjustments to key policy corridors:

  • Standing Deposit Facility (SDF): 5%
  • Marginal Standing Facility (MSF): 5.5%

To improve liquidity and strengthen monetary transmission, the RBI will conduct forex swaps and purchase ₹1 lakh crore worth of government bonds through Open Market Operations (OMO).

RBI reviews a challenging year

Reflecting on 2025, Malhotra said the year delivered strong growth and moderate inflation even as global trade and geopolitical uncertainties persisted. He added that bank credit and retail lending remained healthy, providing support to the economy.

India News

ED summons Pinarayi Vijayan in money laundering case

The Enforcement Directorate has summoned former Kerala chief minister Pinarayi Vijayan for questioning in a money-laundering investigation linked to alleged payments by Cochin Minerals and Rutile Ltd to his daughter’s company, Exalogic Solutions.

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The Enforcement Directorate (ED) has summoned former Kerala chief minister Pinarayi Vijayan for questioning in connection with a money-laundering investigation linked to Cochin Minerals and Rutile Ltd (CMRL). Officials said he has been asked to appear before the agency at its Kochi office on October 23.

The summons has been issued under the Prevention of Money Laundering Act (PMLA). The investigation concerns alleged payments by CMRL to Exalogic Solutions, a now-defunct company associated with Vijayan’s daughter, Veena T.

The development comes after Kerala’s Vigilance and Anti-Corruption Bureau (VACB) registered cases against Vijayan and members of his family in connection with the alleged bribery case.

What is the CMRL-Exalogic case?

The case centres on alleged payments made by CMRL to Exalogic Solutions under the guise of information technology consultancy services.

According to the ED, CMRL allegedly made fraudulent payments of Rs. 2.78 crore to the company. The agency is examining the financial transactions as part of its money-laundering investigation. These remain allegations and should not be treated as established criminal wrongdoing.

The matter came before the Kerala High Court, which on October 9 directed the VACB to register a case based on material submitted by the ED. The state agency subsequently registered cases involving Vijayan and his family members.

Pinarayi Vijayan challenges FIR order

Vijayan approached the Supreme Court on October 16, challenging the Kerala High Court order directing the registration of an FIR against him.

The legal challenge followed developments in the state courts concerning the alleged CMRL-Exalogic transactions. The ED’s summons is a separate step in its investigation under the anti-money-laundering law.

The case involves allegations of financial irregularities linked to payments to Exalogic Solutions. The investigation and legal proceedings are ongoing; the summons itself does not establish guilt.

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India News

LK Advani, 98, hospitalised in Delhi with chest infection

Veteran BJP leader LK Advani, 98, has been admitted to Delhi’s Indraprastha Apollo Hospital with a chest infection. Hospital officials said his condition was stable.

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Veteran Bharatiya Janata Party (BJP) leader and former Deputy Prime Minister Lal Krishna Advani has been admitted to Indraprastha Apollo Hospital in Delhi with a chest infection. Hospital officials have said that his condition is stable.

The 98-year-old leader was brought to the hospital at around 7.30 pm on Friday, October 16, and admitted to its pulmonary department. He is receiving treatment and remains under observation by a team of doctors, with medical tests underway.

LK Advani’s recent hospitalisation

Advani was previously admitted to Apollo Hospital in May 2026 because of age-related health complications. He remained under medical care for a few days before being discharged, according to the report.

In December 2024, the veteran BJP leader was admitted to the intensive care unit (ICU) at Indraprastha Apollo Hospital for medical management and investigations. He received treatment under the supervision of a neurologist, and the hospital had described his condition as stable at the time.

On December 17, 2024, the hospital reported gradual improvement and indicated that he was likely to be moved out of the ICU within the next one to two days.

Advani’s political career

Advani has been a prominent figure in the BJP’s rise in Indian politics. He served as the party’s president on multiple occasions and played a significant role in expanding its organisational presence.

His 1990 Ram Rath Yatra became a major event in the country’s political history. He later served as Union Home Minister and was India’s Deputy Prime Minister from 2002 to 2004 in the government led by Atal Bihari Vajpayee.

In recognition of his contribution to public life, Advani was awarded the Bharat Ratna, India’s highest civilian honour, in 2024. He had previously received the Padma Vibhushan in 2015.

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India News

Centre sends 3 letters to Punjab government after anti-drug activist’s killing

The Centre has sought reports from the Punjab government on three incidents linked to allegations surrounding drug-related activities, including the killing of anti-drug activist Parvinder Singh Jhota.

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Amit Shah

The Union government has sought detailed explanations from the Punjab government regarding three incidents linked to concerns over drug-related activities in the state. The move follows the killing of anti-drug activist Parvinder Singh Jhota in Mansa and comes amid renewed scrutiny of the state’s drug problem and law-and-order situation.

The Ministry of Home Affairs (MHA) sent three letters to the Punjab chief secretary on October 16, with copies to the state’s director general of police. The communications sought information about Jhota’s killing, the fatal attack on Bikramjit Singh in Gurdaspur district, and the reported suicide of Gulzar Singh in September.

What the Centre’s three letters cover

The first letter concerned the October 13 killing of Parvinder Singh, popularly known as Jhota, who was known for raising concerns about drug abuse and alleged illegal sales of intoxicating substances in Punjab.

The ministry sought a comprehensive factual report on the incident and details of the steps taken by the state government following his death. It also asked about action taken on the Union government’s Vision Document on Narcotics Control for 2026–2029.

The document outlines measures to strengthen anti-narcotics enforcement, including dedicated anti-narcotics task forces, financial investigations, prosecution under the Narcotic Drugs and Psychotropic Substances Act, and action against transnational drug networks.

The second letter concerned the attack in Mari Panwan village in Gurdaspur district, in which Bikramjit Singh died and Nishan Singh and Gurmukh Singh were critically injured.

According to accounts cited in the report, the three men had objected to alleged drug peddling in their village before being attacked with sharp-edged weapons. However, police have denied that the incident was motivated by drug-related disputes and said an investigation was underway. Bikramjit’s relatives have also disputed the police account that the murder followed a dispute over a mobile phone.

The third letter sought details about Gulzar Singh’s death on September 8. The ministry referred to reports that he had raised concerns about the availability of synthetic drugs and had faced pressure and harassment from the local village panchayat. These allegations form part of the circumstances the Centre has asked the state government to examine and report on.

Amit Shah raises questions over Punjab’s law and order

Union Home Minister Amit Shah also raised concerns about the situation in Punjab, referring to the challenges posed by drugs, gangsterism and organised crime.

Questioning the Bhagwant Mann-led government over public safety, Shah called for action against the drug trade, protection for young people and strict measures against criminals.

The Centre’s requests place the three incidents under scrutiny, although the alleged links between the attacks or deaths and opposition to drug-related activities remain subject to the specific circumstances and investigations in each case.

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