RBI Policy Repo Rate - India Indian Central Bank interest rate

This page shows the current and historic values of the Policy Repo Rate as set by the Indian Central Bank (Reserve Bank of India, RBI). The Policy Repo Rate is often regarded as the most important interest rate of the RBI.

The current interest rates of more central banks

Current RBI Policy Repo Rate
6.50 %
6.25 %
5.90 %
5.40 %
4.90 %
4.40 %
4.00 %
4.40 %
5.15 %
5.40 %

Chart RBI Policy Repo Rate

Historical interest rates

Our content is based on reliable sources. However, we do not accept liability for any errors. The content of this website is for informational purposes only and is not intended as financial advice. Decisions you make based on the information we display are always at your own expense and risk.

Reserve Bank of India (RBI)

The Reserve Bank of India (RBI) is the Indian central bank. The RBI's most important goal is to maintain monetary stability - moderate and stable inflation - in India.

View the current and historical inflation in India

The RBI uses monetary policy to maintain price stability and an adequate flow of credit. Rates which the Indian central bank uses for this are the bank rate, policy repo rate, reverse repo rate and the cash reserve ratio.

Other tasks of the Reserve Bank of India are:

  • to maintain the population's confidence in the system, to safeguard the interests of those who have entrusted their money and to supply cost-effective banking systems to the population;
  • to manage foreign currency controls: facilitating exports, imports and international payment traffic and developing and maintaining the trade in foreign currencies in India;
  • issuing money (the rupee) and adequately ensuring a high quality money supply;
  • acting as the government's banker;
  • acting as the banks' banker.

RBI Policy Repo Rate

When reference is made to the Indian interest rate this often refers to the Policy Repo Rate, also called the key short term lending rate. If banks are short of funds they can borrow rupees from the Reserve Bank of India (RBI) at the Policy Repo Rate. If the central bank of India wants to put more money into circulation, then the RBI will lower the Repo Rate. The Reverse Repo Rate is the interest rate that banks receive if they deposit money with the central bank.

Increases or decreases in the Policy Repo Rate and the Reverse Repo Rate have an effect on the interest rate on banking products such as loans, mortgages and savings. Changes in interest rates also often lead to fluctuations in the exchange rate of the Indian rupee.