RBI warns NBFCs about jeopardizing financial stability while chasing growth at all costs | Mint

The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged and maintain a neutral policy stance. This decision reflects the central bank’s focus on balancing inflation control with supporting economic growth. The RBI’s assessment indicates that inflationary pressures are easing, but it remains cautious about potential risks. The unchanged repo rate is expected to provide stability to the financial markets and support credit growth. The RBI also issued warnings to NBFCs, microfinance, and housing finance companies to maintain prudent lending practices and ensure financial stability. This policy stance aims to foster a conducive environment for sustainable economic growth5.