The Reserve Bank of India (RBI) has further reduced the repo rate to 6% following the first Monetary Policy Committee meeting of FY26. This second consecutive rate cut aims to control inflation, encourage borrowing,

This reduction in FD rates will impact depositors, especially senior citizens, who are dependent on interest earned from fixed deposits parked with banks.

The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks (like SBI, HDFC, etc.) when they are short on cash. RBI = Big Bank Your bank (like SBI) = Small bank When your bank needs money, it borrows from RBI at a certain interest rate — that rate is called the Repo Rate.