RBI says low call rate supports banks not signaling cuts
The RBI wants everyone to know: just because the call rate is below the repo rate, it doesn't mean interest rate cuts are coming soon.
This move is really about making sure banks have enough cash on hand during uncertain times by keeping rates at the lower end of their usual range.
For context, in March 2026, the average call rate matched the 5.25% repo rate.
Sanjay Malhotra stresses liquidity support
RBI Governor Sanjay Malhotra made it clear that its top priority is giving banks reliable liquidity, not hinting at any upcoming rate cuts.
The current setup keeps things stable with a floor of 5% and a ceiling of 5.5%, sandwiching the repo at 5.25%.
Malhotra reassured everyone that even if call rates dip lower, RBI will keep supporting banks so there's no need to worry about sudden changes or instability.