New Delhi: The Reserve Bank of India on February 6, 2026, unveiled a set of five major policy decisions following the conclusion of its three-day Monetary Policy Committee (MPC) meeting, signalling a strong push towards customer protection, economic stability and business support, while keeping interest rates unchanged.
Addressing the media after the meeting, Sanjay Malhotra said the decisions were aimed at balancing growth, inflation risks and financial stability in an increasingly digital and uncertain global environment.
Decision 1: ₹25,000 compensation for small digital frauds
In a major relief for bank customers, the RBI proposed a framework to compensate victims of small-value digital frauds up to ₹25,000. The central bank said a large number of fraud cases involve relatively small amounts but cause significant distress to users.
The RBI also announced that it will soon release a discussion paper on strengthening digital payment security, which may include additional authentication layers and special safeguards for senior citizens and other vulnerable users.
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Decision 2: Inflation risks acknowledged
Inflation remained the central bank’s biggest concern. The RBI indicated that price pressures could edge higher than earlier estimates in the coming quarters due to global geopolitical risks and supply-side uncertainties. For FY27, the RBI revised its inflation projections upward:
- Q1 inflation raised to 4.0% from 3.9%
- Q2 inflation increased to 4.2% from 4.0%
While core inflation is expected to remain under control, the RBI cautioned that external shocks could pose upside risks.
Decision 3: Growth outlook strengthened
On the growth front, the RBI struck an optimistic note. It said India’s economic momentum remains resilient and broad-based, supported by consumption, investment and improving financial conditions.
The central bank raised its GDP growth forecast for Q2 FY27 to 7.0%, up from an earlier estimate of 6.8%, indicating stronger-than-expected economic activity.
Decision 4: Big boost for MSMEs
In a move aimed at supporting small businesses and entrepreneurship, the RBI proposed doubling the limit for collateral-free loans to MSMEs to ₹20 lakh, from the existing ₹10 lakh.
The measure is expected to improve access to working capital, machinery financing and business expansion, while also encouraging banks to lend more confidently to the sector. Economists say the decision could have a positive ripple effect on employment and local economic activity.
Decision 5: Repo rate left unchanged
The RBI decided to keep the repo rate unchanged at 5.25%, marking continuity in its monetary stance amid lingering inflation risks.
Repo rate: 5.25%
Standing Deposit Facility (SDF): 5.00%
Marginal Standing Facility (MSF): 5.50%
This was the first MPC meeting after the Union Budget 2026, and the pause indicates the central bank’s preference to assess the impact of earlier measures before making further rate moves.
The bigger picture
Taken together, the RBI’s February policy decisions underline a clear strategy: protect consumers in the digital economy, support MSMEs, remain vigilant on inflation and sustain growth momentum—without rushing into rate changes.
For households, borrowers and businesses alike, these measures are set to shape financial conditions in the months ahead, with customer protection and economic stability firmly at the centre of the RBI’s policy framework.
