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  India's robust growth numbers for the September quarter are raising questions about the need for lower rates even as record-low inflation gives the central bank ample room to resume reductions later this week, analysts said.India's economy expanded at a sharper-than-expected clip of 8.2 per cent in the July-September quarter, prompting analysts to raise their full-year growth estimates to above 7 per cent.That means the world's fifth-largest economy is expanding at a pace close to its estimated potential growth of 6.5 per cent-7 per cent. Potential growth is the rate an economy can expand without sparking inflation.India's retail inflation, however, which slowed to a record-low 0.25 per cent in October, is expected to remain benign for months."The December RBI policy will be set against a backdrop of resilient growth and ultra-low inflation. The stellar growth numbers reaffirm our view of a pause," said Gaura Sen Gupta, chief economist at IDFC First Bank....

  The Reserve Bank of India (RBI) expects microfinance lenders ’ boards to review their spreads against the cost of funds and operating efficiency, said Swaminathan J , Deputy Governor, RBI. He also urged them to question outliers to ensure pricing remains reasonable and reflects actual costs, risk, and efficiency improvements so that no lender takes undue advantage of a borrower’s circumstances.Speaking at a MFIN event in Mumbai on November 14, Swaminathan said, “The Reserve Bank expects lenders to use the room provided by the 2022 framework in a way that strengthens borrower welfare and long-term portfolio quality.”The 2022 reset of the microfinance framework removed pricing caps and aligned rules across all regulated lenders. Swaminathan noted that lighter regulation is possible only if industry standards remain high. “Flexibility and accountability travel together,” he said.  He stressed that lenders must properly assess borrowers’ incomes, seasonal variations, and exist...

The government’s move to make retail health insurance GST-free has done more than just cut costs, it has changed the way Indians buy health cover. New data from Policybazaar shows a sharp rise in demand for bigger covers and comprehensive protection. What’s changed after the 0 per cent GST exemption The average sum insured has jumped 38 per cent, from Rs 13 lakh to Rs 18 lakh. Nearly half of all new buyers (45 per cent) now opt for policies in the Rs 15–25 lakh range. Only 18 per cent are sticking with smaller covers below Rs 10 lakh. Millennials and mid-aged consumers are driving this shift, showing growing awareness of health and financial risks. Seniors and smaller cities step up The surge isn’t just among younger policyholders or metro buyers: Older customers (61-75 years and above) have shown an 11.5 per cent rise in buying high-value covers Tier-II cities are catching up, those choosing Rs 15-25 lakh plans rose from 44.1 per cent to 48.6 per cent Meanwhile, small-cover plans drop...

The Reserve Bank of India's (RBI's) Monetary Policy Committee (MPC) is set to announce the decision of its October meeting today. While a rate cut remains unlikely, the committee may revise the inflation forecast in today's meeting. Here are five key things you should know before the RBI's October MPC meet begins: 1. August 2025 MPC: A snapshot During its August meeting, the MPC retained the repo rate at 5.5 per cent after slashing it by 100 basis points (bps) in three consecutive cuts since February. One basis point is a hundredth of a percentage point. The rate cuts brought down the repo rate from 6.5 per cent in February. The repo rate is the interest rate at which the RBI lends money to commercial banks.The central bank also revised its Consumer Price Index (CPI)-based inflation projections downward due to softer food prices and easing global commodity costs. In its August MPC meeting, RBI maintained its stance as 'neutral.' The stance was shifted from '...

  The Reserve Bank of India (RBI) has lowered its inflation forecast for 2025-26 to 2.6 per cent, down from the previous estimate of 3.1 per cent. Quarterly projections are as follows: Q2FY26 and Q3FY26 at 1.8 per cent, and Q4FY26 at 4 per cent. Consumer Price Index (CPI) inflation for Q1 of 2026-27 is projected at 4.5 per cent.“The risks are evenly balanced,” RBI Governor Sanjay Malhotra said. The MPC noted that the inflation outlook has become more favourable in recent months, mainly due to a sharp drop in food prices and the rationalisation of GST rates. The decline in overall inflation is largely driven by lower food inflation, supported by better supply conditions and government measures to manage the supply chain efficiently. The recent GST rate adjustments are expected to bring down the prices of several items in the CPI basket. As a result, overall inflation is likely to be softer than the August projection, mainly because of the GST cuts and lower food prices.Malhotra said...

  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...

  Lower investment announcements amid uncertain demand conditions, along with higher cash buffer, points to a cautiously optimistic outlook for private investment activity in the country, a study authored by Reserve Bank of India (RBI) staff in the August bulletin of the central bank said.“Looking ahead, the investment outlook remains cautiously optimistic,” the study highlighted.Having said that, the study also highlighted that India Inc has entered the current financial year (FY26) with healthier balance sheets, higher cash buffer, improved profitability, and greater access to diversified funding sources, despite global uncertainties.And a host of factors, including policy support for infrastructure, sustained disinflation, lower interest rates following 100 basis points policy rate reduction by the central bank, easy liquidity conditions, and rising capacity utilisation, are creating a conducive environment for private investment.As a result, the phasing profile of pipeline proj...

  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...

  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...

  The Reserve Bank of India (RBI) is expected to announce a 25 basis points (bps) repo rate cut in the upcoming Monetary Policy Committee (MPC) meeting scheduled from August 4 to 6, according to a report by the State Bank of India (SBI).The report said a frontloaded rate cut in August could bring an "early Diwali" by boosting credit growth, especially as the festive season in FY26 is also frontloaded. It added that past data show a clear trend, any repo rate cut ahead of Diwali results in higher credit growth during the festive period.It stated, "We expect RBI to continue frontloading with a 25 bps cut in August policy."Citing an example, the report noted that a 25 bps repo rate cut in August 2017 led to an incremental credit growth of Rs 1,956 billion by the end of Diwali, with almost 30 per cent of this in personal loans.It added that Diwali, being one of the biggest festivals in India, sees higher consumer spending, and a low-interest rate environment before Diwa...

  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...

  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...

  Large tariffs by the United States administration and elevated geopolitical risk have increased near-term global financial stability risks, and along with weather events pose downside risks to domestic growth, Reserve Bank of India(RBI) Governor Sanjay Malhotra said in the foreword to the Financial Stability Report released today.Noting that domestic growth momentum is buoyed by strong domestic drivers, sound macroeconomic fundamentals and prudent policies, Malhotra said: “External spillovers and weather-related events could pose downside risks to growth.”On the other hand, he said the outlook for inflation is benign, and there is greater confidence in the durable alignment of inflation with the Reserve Bank’s target.Commenting that the structural shifts reshaping the global economy are making policy intervention challenging, the Governor emphasised the need for central banks and financial sector regulators to remain vigilant, prudent and agile in safeguarding their economies and...

  India’s gross Goods and Services Tax (GST) collections have doubled over the past five years to reach a record ?22.08 lakh crore in the financial year 2024–25, up from ?11.37 lakh crore in FY21, according to government data released on Monday.The collections in FY25 represent a 9.4% year-on-year growth compared to ?20.18 lakh crore collected in FY24. This marks the highest-ever annual GST collection since the rollout of the indirect tax system in July 2017.The average monthly GST collection in FY25 stood at ?1.84 lakh crore, improving from ?1.68 lakh crore in FY24 and ?1.51 lakh crore in FY22. Back in FY22, the average monthly mop-up was just ?95,000 crore.Since its launch, GST has seen consistent growth, with the number of registered taxpayers rising from 65 lakh in 2017 to more than 1.51 crore in 2025, the data showed."Since its rollout, the goods and services tax has shown strong growth in revenue collection and tax base expansion. It has steadily strengthened India's fis...

  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...

Since the new tax regime is the default tax regime, filing income tax return (ITR) under the old regime would require you to switch from the new tax regime. However, before you do that  -- it is imperative to be aware of certain key rules which govern the switch.Notably, the rules with regards to switching of tax regime depend on the source of income of taxpayers: salary or business/ profession.Which tax regime to choose?Taxpayers can file tax return under the old tax regime if they believe that this would lead to some amount of tax saving. On the other hand, if filing tax return under the new tax regime is profitable then naturally, one would opt for the default regime.What rules apply to salaried employees?Salaried taxpayers can switch the tax regime from old to new and vice versa every year.There is no restriction on salaried employees with regards to switching between the two tax regimes as they can do it every year. However, the same flexibility is not available for persons wh...

  JioBlackRock Mutual Fund has filed draft documents with SEBI for two debt funds — a liquid fund and a money market fund.JioBlackRock Liquid Fund.JioBlackRock Liquid Fund will be an open-ended liquid scheme with relatively low interest rate risk and relatively low credit risk. The scheme will be benchmarked against the Nifty Liquid Index A-I.The investment objective of the scheme is to generate regular income through investment in a portfolio comprising money market and debt instruments with residual maturity of up to 91 days.It is suitable for investors seeking regular income over a short-term investment horizon and aiming to generate returns by investing in money market and debt instruments with a maturity of up to 91 days.It is suitable for investors seeking regular income over a short-term investment horizon and aiming to generate returns by investing in money market and debt instruments with a maturity of up to 91 days.The scheme will offer only a direct plan, and the plan sh...