Mumbai, Oct 1 (PTI) Following are the highlights of the bi-monthly monetary policy announced by Reserve Bank Governor Sanjay Malhotra on Wednesday: * Key interest rate (repo) unchanged at 5.5 pc; * GDP growth projection for FY26 raised to 6.8 pc from 6.5 pc; * Inflation estimate lowered to 2.6 pc in FY26 from 3.1 pc; * GST reforms to have a sobering impact on inflation, growth; * US tariffs to impact exports; * Robust services exports, strong remittance to keep CAD sustainable; * Forex reserves stood at USD 700.2 bn, sufficient for 11 months of imports; * RBI keeping close watch on rupee, to take appropriate steps, as warranted; * Bank credit growth, though lower than last year, continues to support economic activity; * Revised Basel III capital adequacy norms effective for banks from April 1, 2027; * RBI to provide enabling framework for banks to finance acquisitions; * RBI proposes to enhance limits for lending against shares from Rs 20 lakh to Rs 1 crore; * Lending for IPO financing to be raised from Rs 10 lakh to Rs 25 lakh per person; * Proposes further simplifying foreign exchange management norms; * Banks to lend in rupees to non-residents from Bhutan, Nepal and Sri Lanka for cross border trade; * Next meeting of the MPC scheduled during December 3 to 5. PTI NKD CS DRR

Monetary policy stance: repo rate unchanged and regulatory steps to ease bank financing and foreign exchange norms. Monetary policy stance maintained with the repo rate unchanged, revised GDP and inflation projections, and emphasis on external sector resilience and exchange-rate vigilance. Supervisory actions include implementation of Basel III capital adequacy norms, an enabling framework for bank acquisition financing, proposed higher limits for lending against shares and IPO financing, simplification of foreign exchange management norms, and rupee lending to specified non-residents for cross-border trade.