RBI’s measures create a supportive environment for expanding credit and deepening customer engagement.
FinTech BizNews Service
Mumbai, 7 December 2025: The Monetary Policy Committee (MPC) held its 58th meeting from December 3 to 5, 2025, under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC voted unanimously to reduce the policy repo rate under the liquidity adjustment facility (LAF) to 5.25 per cent. Consequently, the standing deposit facility (SDF) rate shall stand adjusted to 5.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.50 per cent. The MPC also decided to continue with the neutral stance.
Mr. Salee S Nair, MD & CEO, Tamilnad Mercantile Bank, states:
“We welcome and commend the decisive and well-calibrated stance taken by the December 2025 MPC under Governor Shaktikanta Das. The unanimous 25 basis‑point cut in the repo rate to 5.25%, accompanied by a neutral policy stance, reflects the RBI’s commitment to sustaining growth while maintaining price stability. Liquidity support through Rs1 trillion in open market operations and a $5 billion USD/INR swap further strengthens credit availability and enhances the transmission of monetary policy. For a 104‑year-old institution like Tamilnad Mercantile Bank, these measures create a supportive environment for expanding credit and deepening customer engagement. The policy is expected to benefit our customers directly through more accessible and affordable home, vehicle, and SME loans, improved deposit returns, and enhanced access to financial services in semi-urban and rural areas. This aligns perfectly with TMB’s long-standing mission of promoting financial inclusion and enabling growth for individuals and businesses alike. Looking ahead to 2026, the banking sector can anticipate a stable-to-supportive interest rate environment and sustained liquidity. At TMB, we are well-positioned to leverage these conditions to accelerate credit delivery, enhance digital and branch services, and provide customers with competitive interest rates and timely financial solutions, thereby strengthening financial resilience, fostering growth, and building long-term trust with our communities.”
