New Delhi: Cooperative banks have lauded the Reserve Bank of India’s (RBI) decision to cut the repo rate to 5.25 per cent and infuse liquidity through a Rs 1 trillion Open Market Operation (OMO) purchase programme along with a $5 billion forex-swap window, saying the measures will strengthen credit flow across local economies.
Ravinder Singh, MD of SVC Bank, said the RBI’s policy actions come at a time when real GDP growth for FY26 is projected at 7.3 per cent and inflation is expected to remain benign at around 2 per cent.
He said the favourable macro environment presents a “real opportunity” for coopera-tive banks that are deeply connected to grassroots communities.
According to Singh, the measures are likely to translate into cheaper credit for farmers, MSMEs and underserved households, improved working-capital availability for small enterprises and en-hanced formal banking penetration across rural and low-income regions.
“The supportive macro-context enables us to widen credit access across urban, semi-urban markets and hinterlands, empower small businesses, industries and households, and contribute to a more re-silient, broad-based growth cycle,” Singh added.