Reserve Bank Governor Sanjay Malhotra on Friday (June 5, 2026) announced the decision of the Monetary Policy Committee which kept the repo rate unchanged at 5.25%, as the central bank adopts a cautious approach in view of the West Asia conflict posing challenges for inflation as well as economic growth.

Moreover, the RBI raised limit for investments by Non-Resident Indians, Overseas Citizens of India in equity instruments.

The six-member MPC started its three-day deliberations on Wednesday (June 3, 2026).

Meanwhile, RBI has lowered GDP growth projection to 6.6% from 6.9% earlier for the current fiscal and raised CPI inflation projection to 5.1% for FY27, higher from earlier estimate of 4.6%.


Following measures were announced by the RBI Governor to attract foreign capital:

For government securities under the Fully Accessible Route (FAR), RBI expanding the universe of ‘specified securities’ by including all new issuances of 15-, 30- and 40-year tenor G-secs. In addition, limits pertaining to short-term investment, concentration and individual securities on FPI investment under the General Route are being removed. These measures along with the tax benefits provided by the government this morning should help attract foreign capital for government borrowing.

The limits for investment by NRIs and OCIs in equity instruments traded on the stock market without SEBI registration are being increased. Further, the same facility is being extended to all individual Persons Resident Outside India (PROIs) at par with NRIs and OCIs. 

A facility of concessional forex swap will be provided till 30th September 2026 to incentivize ECBs by PSUs.

A similar facility for bearing the full hedging cost shall be provided till 30th September 2026 to AD banks for raising fresh 3–5-year FCNR (B) deposits.

It is proposed to restore the time for realisation of export proceeds to nine months.