Business
RBI Lowers Repo Rate by 25 Basis Points to 6.25%; Governor Unveils Additional Measures
Governor Malhotra highlighted that while growth is bolstered by the services and agriculture sectors, sluggish industrial growth remains a challenge.
He also announced that the standing deposit facility (SDF) rate will be maintained at 6.0%, while both the marginal standing facility (MSF) rate and the bank rate will be set at 6.5%. The Consumer Price Index (CPI) inflation for 2024-25 is projected to be 4.8%, with Q4 expected at 4.4%. Assuming normal monsoon conditions next year, the CPI inflation for 2025-26 is forecasted at 4.2%, broken down by quarters as follows: Q1 at 4.5%, Q2 at 4%, Q3 at 3.8%, and Q4 at 4.2%.
The MPC acknowledged that inflation has decreased, supported by a positive outlook on food prices and the ongoing impact of previous monetary policy measures. It is anticipated that inflation will continue to moderate in 2025-26, gradually aligning with targets.
Governor Malhotra emphasized the importance of the flexible inflation targeting (FIT) framework, established in 2016 and reviewed in 2021, marking a significant shift in the country’s monetary policy approach. “Average inflation has been lower under this framework, with only a few instances of surpassing the upper tolerance band,” he noted.
Concerning the external sector, the Governor reported that India’s current account deficit (CAD) has decreased from 1.3% of GDP in Q2 of the previous year to 1.2% in Q2 of this year.
The RBI MPC also introduced a range of developmental and regulatory policy measures related to financial markets, cybersecurity, and payment systems. This includes the introduction of forward contracts in government securities and granting SEBI-registered non-bank brokers access to the Negotiated Dealing System-Order Matching (NDS-OM).
Additionally, a thorough review of trading and settlement timings across various market segments will take place. In terms of cybersecurity, the focus will be on enhancing trust via the ‘bank.in’ and ‘fin.in’ domains, along with implementing additional authentication factors for international card-not-present (online) transactions.
Business
RBI Ends Special Dollar-Rupee Swap Window Early Amid Strong Demand
Mumbai: The Reserve Bank of India (RBI) has decided to close its special forex swap facility for fresh FCNR deposits early.
The facility will now close on August 31, the RBI said on Friday.
The central bank said the decision was taken after receiving an encouraging response. The facility has attracted $52.3 billion through fresh foreign currency deposits.
Banks can continue to undertake swaps with the RBI against FCNR deposits raised under the facility until September 11.
Meanwhile, the schemes for External Commercial Borrowings and Overseas Foreign Currency Borrowings will remain open until December 31, 2026.
The RBI launched the special US dollar-rupee forex swap facility on June 8. It allowed banks to raise fresh three-to-five-year FCNR deposits.
Banks could then swap these deposits with the RBI at a concessional rate. The facility effectively covered the entire hedging cost for banks.
The strong response to the scheme led the RBI to bring the facility to an early close.
Business
Leksa Lighting Technologies Named among India’s Top 100 MSMEs
Moodbidri: A dream that began in the rural area of Niddodi in Moodbidri has now gained national recognition. Leksa Lighting Technologies Pvt. Ltd., founded by Ronald Sylvan D’Souza, has been recognised as one of India’s Top 100 MSME companies.
The prestigious national recognition was presented by the MSME Udyog Foundation at a ceremony held in New Delhi on August 8, 2026.
Ronald Sylvan D’Souza started his entrepreneurial journey from a humble background. Through hard work, discipline and continuous efforts, he built Leksa Lighting Technologies into a recognised lighting technology company.
The company has focused on quality, technological innovation and indigenous manufacturing. Research and development have also played an important role in its growth.
Leksa Lighting has adopted Japanese work practices to improve its manufacturing and operational standards. The company has also worked towards developing quality lighting solutions in India.
What began as a dream in rural Karnataka has now reached different parts of the country. The company is also making its presence felt in international markets.
Speaking about the recognition, Ronald Sylvan D’Souza said the award was not an individual achievement. He credited the entire Leksa team, customers, business partners, family members and everyone who supported the company.
He said he was proud and happy to see a dream that began in Niddodi and Moodbidri receive recognition at the national level.
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The achievement highlights the potential of rural entrepreneurs. It also shows that determination, discipline and consistent hard work can help a business from a rural area achieve success on a national platform.
Leksa Lighting Technologies’ journey stands as an example of how a local dream can grow into a nationally recognised enterprise.
Business
Vehicle Prices to Increase from August 1
New Delhi: Buying a new vehicle is set to become more expensive from August 1, adding to the financial burden on consumers. Several automobile manufacturers have announced a price hike due to rising production costs.
The increase is mainly driven by higher prices of raw materials and components. The cost of steel, aluminium, rubber, plastic, electronic chips, batteries, and spare parts has gone up in recent months. Global market changes caused by ongoing conflicts and inflation have also increased manufacturing expenses.
As a result, vehicle companies have decided to raise the prices of new models. Customers planning to purchase a new vehicle are likely to pay more from August 1.
The price hike is also expected to affect the travel and transport industry. Travel agencies and tour operators say buying new cars, SUVs, and other passenger vehicles will become more expensive.
Operators have already been facing higher expenses due to increased fuel prices and toll charges. With the additional cost of new vehicles, many travel agencies are preparing to revise their rental charges.
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The Karnataka Travels Association has indicated that travel fares may be increased to manage the rising operating costs. Passengers may have to pay more for each trip if the revised rates are implemented.
Meanwhile, several automobile manufacturers have already published details of the upcoming price increase on their official websites. Consumers planning to buy a new vehicle may consider making their purchase before the revised prices come into effect on August 1.
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