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RBI cuts repo rate by 0.25% to bring it to 5.15%, reverse repo rate at 4.9%; fifth cut this year

The Reserve Bank of India cut its repo rate by 25 basis points to 5.15 percent, the fifth cut this year, in a bid to boost the flow of credit and reverse economic slowdown.

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RBI Governor Shaktikanta

[vc_row][vc_column][vc_column_text]The Reserve Bank of India (RBI) today – Friday, Oct 4 – cut its repo rate by 25 basis points to 5.15 percent, the fifth time this year, in a bid to boost the flow of credit and reverse economic slowdown. [/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1570179377756{border-top-width: 10px !important;border-right-width: 10px !important;border-bottom-width: 10px !important;border-left-width: 10px !important;padding-top: 10px !important;padding-right: 10px !important;padding-bottom: 10px !important;padding-left: 10px !important;background-color: #b2b2b2 !important;border-radius: 10px !important;}”]Repo rate is the rate of interest at which the RBI lends money to commercial banks, reverse repo rate is the rate at which it borrows. 

One basis point is a hundredth of a percentage point and 25 basis points means 0.25%.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]The central bank also decided to continue with an accommodative stance “as long as it is necessary” to revive growth, while ensuring inflation remains within the target.

All members of the six-member Monetary Policy Committee (MPC), that met on October 4 to review interest rates, voted to reduce the policy rate, the RBI said.

With this cut, the repo rate, which serves as the MPC’s policy rate, has been reduced for the fifth consecutive time this year, the total coming to 135 basis points. Lower interest rates are expected to make home and vehicle loans cheaper. However, banks have passed on only a fraction of these cuts so far, said reports.

The MPC meeting comes in the backdrop of RBI’s mandate to banks to link their loan products to an external benchmark, like repo rate, for faster transmission of reduction in policy rates to borrowers, from October 1.

The MPC also sharply reduced its growth forecast for the fiscal year 2019-2020 to 6.1% from 6.9% earlier. The committee noted that risks to growth have emerged due to weak domestic demand and sagging export prospects on account of continuing trade tensions. MPC on the other hand retained its consumer price inflation forecast for the second half of the fiscal year 2019-202 as expected at 3.5%-3.7%

The RBI said that while these measures are likely to help strengthen private consumption and spur private investment activity, the continuing slowdown warrants intensified efforts to restore the growth momentum.

The Indian economy grew at the pace of just 5 percent in the June-ended quarter, it’s slowest since 2013. This triggered a slew of measures by the government and the central bank in past few months, including a corporate tax rate cut and setting up loan melas to encourage fresh investments.

Inflation has remained well within the MPC’s target of 4 percent for the past 13 months, giving room for the central bank to respond with policy rate cuts.

“With inflation expected to remain below target in the remaining period of 2019-20 and first quarter of 2020-21, there is policy space to address these growth concerns by reinvigorating domestic demand within the flexible inflation targeting mandate,” RBI said.

The MPC was largely expected to vote in the favour of a rate cut and back government’s efforts to address the current economic slowdown.

The MPC is next scheduled to meet during December 3-5, 2019.

The announcements from the six-member Monetary Policy Committee (MPC) came after a three-day meeting. The rate cut comes at a time when the Indian economy is facing its worst slowdown since the dip in economic activity following the global financial crisis of 2008-09.[/vc_column_text][/vc_column][/vc_row]

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Asaduddin Owaisi offers Opposition alliance in UP, sets October 2 deadline

AIMIM chief Asaduddin Owaisi offered an alliance to Opposition parties in Uttar Pradesh ahead of the 2027 Assembly election and set October 2 as a deadline for a response.

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Asaduddin Owaisi

AIMIM chief Asaduddin Owaisi has offered to join hands with Opposition parties in Uttar Pradesh ahead of the 2027 Assembly election, saying his party is willing to work with those seeking to prevent the BJP from returning to power in the state.

Speaking at a public rally in Kanpur, Owaisi said the AIMIM would wait until October 2 for a response from Opposition parties before announcing any possible political alliance.

At the rally held at the Babupurwa Idgah ground in Kanpur’s cantonment area, Owaisi said the AIMIM did not want the BJP to form the government in Uttar Pradesh for a third time.

He invited parties seeking to prevent the BJP from returning to power to join hands with the AIMIM.

Owaisi targets Samajwadi Party

While making the alliance offer, Owaisi also criticised the Samajwadi Party and its chief Akhilesh Yadav.

Referring to the 2013 Muzaffarnagar riots, Owaisi questioned the record of the Samajwadi Party government during that period. He said around 50,000 people were displaced from their homes and villages during the riots.

Owaisi also alleged that political parties, including the Samajwadi Party, had failed to adequately address the social, economic and educational concerns of Muslims and had not provided sufficient political representation.

He said Muslims in Uttar Pradesh needed a political voice and urged voters to strengthen the AIMIM’s presence in the state Assembly.

AIMIM’s earlier alliance offer in Bihar

Owaisi also referred to the AIMIM’s earlier alliance proposal in Bihar ahead of the Assembly polls.

According to Owaisi, his party had offered to contest six seats as part of an alliance, but the proposal was not accepted. He alleged that “false allegations” were subsequently made against the AIMIM.

Opposition parties have previously accused Owaisi and the AIMIM of benefiting the BJP by dividing Muslim votes. Owaisi has rejected those allegations and has accused Opposition parties of fielding candidates who are unacceptable to minorities.

The latest alliance proposal comes ahead of the 2027 Uttar Pradesh Assembly election, with Owaisi setting October 2 as the date by which he expects a response from Opposition parties.

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AAP takes Punjab report card door-to-door after BJP’s anti-drug yatra

AAP has taken its Punjab government report card door-to-door as the BJP conducts a statewide anti-drug yatra ahead of the 2027 Assembly election.

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Bhagwant Mann

The Aam Aadmi Party has taken its Punjab government report card directly to households as the BJP steps up its statewide campaign against drugs ahead of the 2027 Punjab Assembly election. Chief Minister Bhagwant Mann began the door-to-door outreach from Dhuri, his Assembly constituency.

The move comes after the BJP launched its “Nasha Mukt Punjab Yatra”, which is focused on the drug menace, law and order and corruption. The BJP’s yatra is planned to cover all 117 Assembly constituencies before concluding in Jalandhar.

AAP is using its “Yudh Nashean Virudh” campaign and the Mann government’s wider governance record as the focus of its grassroots outreach.

AAP’s anti-drug strategy

The Punjab government is highlighting a five-point approach covering police enforcement, prevention in schools, youth engagement, community vigilance and rehabilitation.

According to government figures cited in the report, the Anti-Narcotics Task Force registered 61,824 FIRs and arrested 81,433 people between March 2025 and September 2026.

The government said the seizures during this period included 3,918 kg of heroin, 991 kg of opium, 47 tonnes of poppy husk, 1,416 kg of ganja and 65 lakh tablets and capsules.

In schools, a 14-week anti-drug curriculum is being taught to around 7.5 lakh students across 3,600 schools. The government is also promoting sports, cultural activities, mental-health clubs and other youth programmes.

Village vigilance and rehabilitation

The government said around 1.25 lakh people have joined nearly 15,000 Village and Ward Defence Committees.

It also said more than 51,000 citizen tip-offs received through the Safe Punjab WhatsApp Helpline have contributed to over 25,000 drug-related arrests.

On treatment, Punjab currently has 547 OOAT (Outpatient Opioid Assisted Treatment) centres, 219 de-addiction centres and 91 rehabilitation centres, according to the figures cited by the government.

Admissions to government de-addiction and rehabilitation centres rose from more than 12,200 in 2024 to nearly 34,000 in 2025, the report said.

BJP’s anti-drug campaign

The BJP’s “Nasha Mukt Punjab Yatra” has placed the drug issue at the centre of its political outreach in the state. The campaign is also raising concerns related to law and order and corruption and is planned across all 117 Assembly constituencies.

AAP’s response is to take its own record directly to voters, with the party highlighting action against drugs alongside welfare and development initiatives.

The door-to-door campaign comes as political parties begin intensifying their grassroots mobilisation ahead of the 2027 Punjab Assembly election.

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Ram Temple Donation Theft: 105 instances caught on CCTV, SIT tells Supreme Court

The SIT probing the alleged Ram Temple donation theft told the Supreme Court that 105 instances were identified through CCTV footage. The investigation is nearing completion.

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A Special Investigation Team (SIT) probing the alleged donation theft at the Ram Mandir in Ayodhya has identified 105 instances through CCTV footage, the Supreme Court was informed on Monday.

Solicitor General Tushar Mehta, while referring to the SIT’s status report, presented details of the investigation before the top court. The probe is nearing completion and the chargesheet is expected to be filed by September 25.

The Supreme Court reviewed the SIT’s status report during the hearing of the case and took the information presented before it on record.

What the SIT report found

According to the status report, investigators examined CCTV footage along with witness statements and other evidence to identify those allegedly involved in the donation theft.

The report specifically identified 105 incidents of donation theft through CCTV footage.

The court was also informed about the arrests made in the case and the evidence collected during the investigation.

The report further stated that receipts for valuables received as donations are generated through software, while the valuables are kept in a State Bank of India locker.

Supreme Court declines plea for SIT report copy

During the hearing, the petitioners sought a copy of the SIT report. The Supreme Court declined the request, with the bench headed by the Chief Justice saying it did not want to take the matter out of the Sessions Judge’s hands.

The court said it would pass an order if it considered further investigation necessary.

Eight accused arrested

The FIR in the case names eight people — Avinash Shukla, Anukalp Mishra, Lavkush Mishra, Manish Kumar Yadav, Karunesh Pandey, Ramashankar Mishra, Subhash Srivastava and Ram Shankar Yadav alias Tinnu — along with other unidentified individuals.

According to the report, all eight named accused have been arrested and booked under relevant provisions of the Bharatiya Nyaya Sanhita and Section 13(1)(a) of the Prevention of Corruption Act.

SIT probe and changes at Ram Mandir Trust

The three-member SIT, headed by Lucknow Divisional Commissioner Vijay Vishwas Pant, was constituted by the Uttar Pradesh government on June 13 at the request of the Ram Mandir Trust.

The panel submitted its preliminary report to the state government on June 23 and made several recommendations.

Following the donation theft controversy, top Ram Mandir Trust officials Champat Rai and Anil Mishra were removed from their posts. A CEO-led administrative structure has since been introduced, with former military officer Jitendra Mishra appointed as CEO.

The SIT investigation is now nearing completion, with the chargesheet scheduled to be filed by September 25.

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