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Relief for borrowers as RBI slashes repo rate by 50 basis points

The Reserve Bank of India has cut the repo rate by 50 basis points to 5.5%, promising relief for borrowers and boosting optimism in the real estate market.

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Reserve Bank of India

In a significant move aimed at stimulating economic activity and easing the financial burden on borrowers, the Reserve Bank of India (RBI) has announced a 50 basis point cut in the repo rate, bringing it down to 5.5%. This decision, taken unanimously during the Monetary Policy Committee (MPC) meeting held from June 4 to 6, exceeds market expectations and is being seen as a proactive measure to support growth amid a softening inflation environment.

Major takeaway for homebuyers and borrowers

This steeper-than-expected rate cut is set to ease equated monthly installments (EMIs) on long-term loans, particularly home loans. With lending costs likely to fall, banks and financial institutions are expected to pass on the benefit to consumers, making borrowing more affordable. This move is especially encouraging for prospective homebuyers in the mid-income segment, who stand to gain from lower interest payments.

RBI outlook: Steady growth, easing inflation

RBI Governor Sanjay Malhotra explained that despite a fragile global economic backdrop and downward revisions in international trade forecasts, the Indian economy continues to show resilience. “India’s strength comes from the strong balance sheets of five major sectors. We are already growing fast and aspire to grow faster,” he remarked.

Inflation has remained within RBI’s comfort zone, with retail inflation falling to 3.16% in April from 3.34% in March. The central bank now projects the retail inflation for the current financial year at 3.7%, an improvement from its earlier forecast of 4%. Food inflation remains soft, and core inflation is expected to stay benign.

CRR reduction adds liquidity

In another key decision, the RBI also reduced the cash reserve ratio (CRR) by 100 basis points, effectively releasing ₹2.5 lakh crore into the banking system. This is likely to enhance liquidity and improve the capacity of banks to lend.

Sectoral impact: Real estate gets a boost

The real estate sector has welcomed the rate cut. According to experts, the move is likely to strengthen homebuyer sentiment, drive enquiries, and lead to an uptick in residential property sales, especially in urban markets. Vimal Nadar of Colliers India noted that the reduced borrowing costs could significantly improve affordability in mid-income housing.

Piyush Bothra, co-founder of Square Yards, highlighted that the decision will give developers confidence to launch new projects, particularly in low-to-mid housing segments. “A 50-bps reduction will translate into meaningful EMI savings,” he said.

India remains attractive for investors

Governor Malhotra underscored India’s appeal to global investors, noting that the country’s forex reserves stand at $691 billion—enough to cover over 11 months of goods imports. Key economic indicators including discretionary spending, private consumption, and industrial activity remain robust, he added.

While maintaining the GDP growth projection at 6.5% for the current financial year, the RBI outlined quarterly growth expectations as follows: 2.9% (April-June), 3.4% (July-September), 3.9% (October-December), and 4.4% (January-March).

India News

DMK leader’s son arrested after car rams family in Krishnagiri, one dead

A 20-year-old son of a DMK leader has been arrested for allegedly driving a car into four members of a family in Krishnagiri, killing assistant labour inspector Sivamoorthy.

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DMK leader

A 20-year-old son of a leader from the Dravida Munnetra Kazhagam (DMK) has been arrested for allegedly mowing down four members of a family following a heated argument in Tamil Nadu’s Krishnagiri district. One person died in the incident, police said.

The deceased has been identified as Sivamoorthy, an assistant labour inspector and a resident of Krishnagiri. According to the police, the incident occurred outside his residence after the accused, identified as Adithya, objected to a two-wheeler parked on the road.

Police said Adithya was driving the car and began honking as the two-wheeler was blocking the road. Sivamoorthy and his family members reportedly stepped out to move the vehicle. During the exchange that followed, an altercation broke out.

Investigators allege that Adithya then rammed his car into Sivamoorthy, his son Kirubakaran, daughter-in-law Amsavalli and granddaughter Nilani. Sivamoorthy sustained severe injuries and later succumbed. The others were injured in the incident.

Besides Adithya, two of his friends — Rithik Kumar and Harish — who were present in the car at the time, have also been arrested. A case of murder has been registered against the trio and further investigation is underway.

Kirubakaran, recounting the incident, said the family had attempted to move the parked two-wheeler when the accused damaged it. He alleged that the men appeared intoxicated and tried to assault them with a stick before the vehicle was driven into the family.

Amsavalli said they had tried to defuse the situation peacefully but the confrontation turned violent, resulting in her father-in-law’s death and injuries to her child.

A police officer stated that Adithya’s father is a local functionary of the DMK in Krishnagiri district. The victim’s family has demanded strict action in the case.

Reacting to the incident, state BJP chief Nainar Nagendran criticised the ruling Dravida Munnetra Kazhagam, questioning the state government over the episode and alleging that party functionaries were misusing their influence.

Police said the probe is ongoing.

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India News

Security tightened across Delhi metro stations after bomb threat emails

Delhi is on high alert after bomb threat emails targeted metro stations, the Red Fort and the Assembly. Authorities confirmed the threats were hoaxes but tightened security as a precaution.

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Delhi Metro

Security has been intensified across all metro stations and major installations in the national capital after a series of bomb threat emails were received on Monday. Authorities later confirmed that the threats were hoaxes following detailed inspections by security agencies.

According to officials, several key institutions — including the Delhi Secretariat, Delhi Assembly, the Red Fort and two schools — received threatening emails earlier in the day. Extensive searches were carried out at all the locations mentioned in the messages, but nothing suspicious was found.

A senior police officer said cyber teams are working to trace the origin of the emails. Preliminary findings suggest that the senders may have used Virtual Private Networks (VPNs) in an attempt to conceal their identities and mislead investigators. Officials expressed confidence that those responsible would be identified.

Metro stations under heightened surveillance

Following specific references to metro services in the emails, security arrangements were strengthened across the entire network of the Delhi Metro Rail Corporation. Additional personnel have been deployed at stations, and anti-sabotage checks are being conducted.

Police said random frisking of passengers and intensified CCTV surveillance are being carried out as part of precautionary measures. Bomb disposal squads and dog squads were stationed at sensitive sites, including the Red Fort, Delhi Secretariat and the Assembly complex.

The threatening emails reportedly included the slogan “Delhi banega Khalistan” and warned of explosions at an Army school, the Assembly and the Red Fort at specific times during the day. Officials stated that all mentioned locations were thoroughly checked and declared safe.

Authorities also coordinated with counterparts in neighbouring states to enhance security at metro stations falling under their jurisdictions.

While no explosives were found, officials said the tightened security arrangements will remain in place as a precaution. Cyber teams continue efforts to trace the IP addresses and identify those behind the threat emails.

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JNU protest turns violent as Left and Right student groups trade charges

A late-night protest at JNU turned violent as Left and ABVP student groups accused each other of stone-throwing and attacks near the East Gate.

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JNU Protest

Tension gripped the campus of Jawaharlal Nehru University in the early hours of Monday after a protest march allegedly spiralled into violence, with rival student groups accusing each other of triggering the unrest.

Students claimed that the incident occurred around 1.30 am when a confrontation broke out during a march called by the Jawaharlal Nehru University Students’ Union. The protest, named “Samta Juloos”, was headed towards the East Gate and was organised to demand the resignation of Vice-Chancellor Santishree Dhulipudi Pandit and the withdrawal of a rustication order.

According to protesters, several students were injured after alleged stone-throwing during the clash. They alleged that the university administration did not intervene during the march and instead permitted members of the Akhil Bharatiya Vidyarthi Parishad to confront demonstrators.

However, the ABVP denied the allegations and countered that Left-affiliated organisations instigated the confrontation and were spreading misinformation about the events.

Left-backed groups, including the All India Students’ Association, claimed that ABVP activists targeted the JNUSU encampment and hurled stones at “unarmed students”, leading to multiple injuries.

Videos shared by students on social media reportedly showed chaotic scenes near the protest site, with members of rival groups engaged in heated exchanges and physical scuffles.

University authorities did not immediately respond to queries regarding the incident. Students said the situation on campus remained tense following the overnight clashes.

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