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RBI keeps policy rate unchanged amid inflationary pressure

The Reserve Bank on Wednesday expectedly kept interest rates unchanged amid hopes of a global recovery on the back of ceasefire in the six-week-long US/Israel-Iran conflict. The policy decision comes as a month and a-half-long West Asia conflict has disrupted energy supplies, shot up crude oil prices and created fiscal and inflationary pressures for import-dependent nations like India. This is the first monetary policy review after the government announced a fresh inflation target for the RBI last month. The government has asked the RBI to maintain retail inflation at 4 per cent with a margin of 2 per cent on either side for another five years ending March 2031. Announcing the first bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has unanimously decided to retain short-term lending rate or repo rate at 5.25 per cent with a neutral stance. The rate cut pause comes on the back of the consumer price index (CPI) based headline retail inflation that moved closer to the RBI's medium-term target of 4 per cent at 3.21 per cent in February. Additionally, the rupee has depreciated by over 4 per cent since the war, which has consequences for pushing up import inflation. However, the rupee has appreciated by 50 paise to 92.56 against US dollar following announcement of the ceasefire by the US and Iran. Based on the recommendation of the MPC, the RBI reduced the repo rate by 25 bps each in February, April, and December 2025 and 50 basis points in June amidst easing retail inflation. India's retail inflation dropped to a historic low of 0.25 per cent in October 2025, marking the lowest level since the Consumer Price Index (CPI) series was introduced. However, the rupee declined to historic low and crossed 95 against a dollar last month making imports costlier, raising fears of rise in inflation. Rupee touched a record low of 95.21 on March 30, 2026. 

Pradhan Mantri Mudra Yojana completes 11 years

The Pradhan Mantri MUDRA Yojana (PMMY) launched by Prime Minister Narendra Modi on April 8, 2015, is marking 11 years of success in strengthening India's grassroots entrepreneurs. This initiative has been designed to bridge the gap in financial accessibility, offering streamlined, easy collateral-free loans up to Rs 20 lakh to support small-scale business ventures for non-corporate and non-farm income-generating activities.

Micro, Small, and Medium Enterprises (MSMEs) serve as the backbone of the industrial ecosystem, acting as essential partners to major corporations and driving balanced economic development. By diversifying their reach into new industries and refining their output, these enterprises are effectively addressing the needs of both local consumers and global markets.

The landscape of business financing has evolved rapidly, with digital innovations and data analytics making it easier for smaller firms to secure capital. A cornerstone of this progress is PMMY, a strategic government initiative famously characterized by its mission to "Fund the Unfunded," ensuring that credit reaches those traditionally overlooked by formal banking systems. On the occasion of the 11th successful year of PMMY, Union Minister for Finance & Corporate Affairs Nirmala Sitharaman highlighted PMMY's role in empowering millions and fulfilling the vision of inclusive growth. "Cumulatively, more than 57.79 crore loans have been sanctioned, amounting to Rs 40.07 lakh crore of disbursement. Two-thirds of the loans have been sanctioned to women entrepreneurs. Approximately one-fifth of all the loans were extended to first-time entrepreneurs.

"In sheer magnitude, this translates to 12.15 crore loans with an amount of 12 lakh crores extended to new entrepreneurs," she added. The scheme has successfully ended the exploitation of India's small entrepreneurs by informal lenders. In the past 11 years, it has extended over Rs 40 lakh crore through 57.7 crore loans, instilling a new sense of confidence among borrowers." 

Veteran Congress leader Mohsina Kidwai passes away at 94

Veteran Congress leader and former Union minister Mohsina Kidwai, who held key ministerial portfolios under former Prime Ministers Indira Gandhi and Rajiv Gandhi, passed away on Wednesday. She was 94. Kidwai, who was suffering from age-related ailments, breathed her last at Noida's Metro Hospital early in the morning, her son-in-law Razi Ur Rehman Kidwai said. Top Congress leaders paid tributes to the veteran leader. Congress national president Mallikarjun Kharge said that her passing is a profound loss to the party and to the nation. "Deeply saddened by the passing of Mohsina Kidwai ji, a stalwart of the Congress party and a former Union minister who dedicated over six decades of her life to the service of the nation," Kharge said on X.

Kidwai has held important portfolios in the Indira Gandhi and Rajiv Gandhi governments. She also served as a member of the Congress Working Committee and the party's Central Election Committee. She holds a unique distinction of being a member of four Houses at different points in her life -- an MLC, MLA, and as an MP in the Lok Sabha and the Rajya Sabha. Kidwai's political career began in 1960 when she won a seat in the Uttar Pradesh Legislative Council. She was just 28 years old then. In 1974, she became a member of the state assembly and, by the time she won an election to Parliament in 1978, she had already been a minister in the Uttar Pradesh government for about five years. Her rise in national politics began with her victory in the 1978 by-election for the Azamgarh parliamentary constituency in Uttar Pradesh. Following the Emergency and the Congress's ouster from power, this bypoll victory not only propelled her to the centrestage of national politics but also gave the Congress a new lease of life. It was not long before Indira Gandhi, by then back as prime minister, appointed her a member of her council of ministers in the early 1980s. For Kidwai, that was the beginning of a series of key assignments in the Central government -- holding several portfolios, including labour, health and family welfare, rural development, transport and urban development -- first under Indira Gandhi and then under Rajiv Gandhi, as she gained the trust of both the mother and son. After several stints in the Lok Sabha, Kidwai entered the Rajya Sabha in 2004. She continued to hold her seat in the Upper House well into her eighties. Interestingly, she was also in the news during the 2022 Congress presidential election when she emerged as one of the proposers to Shashi Tharoor's candidature. Tharoor had lost to Kharge in that election. In 2022, she also released her memoir "My Life in Indian Politics", which captured the ups and downs of her political life.