New Delhi. The Reserve Bank of India (RBI) has not changed the repo rate for the 10th consecutive time. Repo rate is the rate at which RBI lends to banks. When it decreases, banks cut interest rates, which reduces the EMI of home loans, car loans etc. RBI has kept it stable at 6.5%. However, looking at the inflation situation, it is expected to be cut in December. RBI Governor Shaktikanta Das made this announcement after the three-day monetary policy committee review meeting.
At the same time, RBI has given a big relief in the festive season by eliminating foreclosure charges or pre-payment penalty on closing floating rate term loans. This means that the penalty levied on closing the loan before time or reducing the loan by paying a lump sum amount in between will no longer be recovered.
