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RBI may cut interest rates in December

The Reserve Bank of India (RBI) sees room to lower its key policy rate, the repo rate, in its December meeting. This comes as inflation is very low and the economy is growing steadily.

RBI Governor Sanjay Malhotra said recent data shows the central bank could consider a rate cut. Retail inflation rose just 0.25% in October, the lowest in years. Food prices are falling, and both manufacturing and services are showing growth.

Good rainfall this year has filled reservoirs, supporting crop sowing and keeping supply strong. The rupee has weakened slightly against the US dollar, but the RBI is focused on controlling volatility rather than targeting a specific level.

While the central bank sees space to cut rates, the final decision will be taken by the Monetary Policy Committee (MPC) in December. If rates are reduced, borrowing could become cheaper for businesses and individuals, supporting investment and economic growth.

Also Read: Google and Accel partner to boost India’s AI startups

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RBI, ECB to link UPI with Europe’s instant payments

India’s Reserve Bank (RBI) is teaming up with the European Central Bank (ECB) to connect the country’s Unified Payments Interface (UPI) with Europe’s instant payment system, TARGET Instant Payment Settlement (TIPS). The partnership aims to make sending money between India and the euro‑zone quicker, cheaper, and more convenient.

The project is being implemented through NPCI International Payments Ltd (NIPL), the global arm of India’s National Payments Corporation (NPCI). Once operational, the link will benefit Indian travellers, exporters, fintech companies, and businesses by streamlining international payments and reducing transaction costs.

The initiative is part of a wider global push, backed by the G20, to make cross‑border payments faster, more transparent, and affordable. India has already extended UPI to countries like Singapore and is now exploring Europe as the next major market for its digital payments network.

Officials say that technical integration, settlement arrangements, and risk management systems are still being finalised. The rollout will be phased, ensuring compliance with regulatory, currency conversion, and cross-border payment rules.

Also Read: Rupee hits record low above ₹89