The Reserve Bank of India's Monetary Policy Committee (MPC) meeting concluded on June 5, 2026, with all six members voting unanimously to keep the repo rate unchanged at 5.25% and retain the neutral policy stance. According to the latest meeting minutes released on Friday, the committee maintained its wait-and-watch approach due to multiple uncertainties including the West Asia conflict, rising crude oil prices, and supply chain disruptions. As per the minutes, external member Dr Nagesh Kumar emphasized that "prudence requires waiting for greater clarity to emerge on the impact before any monetary policy response," while external member Saugata Bhattacharya noted that the economy faces "multiple overlapping geo-economic shocks" and that "risk management is now the most sensible approach to monetary policy responses." Executive Director Indranil Bhattacharyya argued that while wholesale inflation has surged, policymakers need to assess how much feeds into consumer inflation, stating that "cost-push inflation induced by supply shocks warrants greater caution - gradualism - in policy making."
Yes Bank revised its FD rates on June 2, 2026, offering its highest FD rate of 7.25% for deposits with a tenure of 18 months 1 day to less than 24 months. As reported by The Economic Times, the private sector lender raised this rate from the previous 7.0%. The bank's revised rate structure shows senior citizens earning 7.75% on this tenure, with rates ranging from 3.25% for 7-day deposits to 6.75% for 12-month deposits for regular customers. According to Groww, banks aren't rushing to cut rates, partly because they need to keep depositors from leaving amid a liquidity crunch, which actually works in favor of investors with 1-3 year horizons.
DCB Bank revised its FD rates on June 1, 2026, offering its highest interest rate of 7.5% to general customers across multiple tenures. According to The Economic Times, the bank provides this rate for deposits with a tenure of 24 months to less than 25 months. The revised structure includes senior citizens earning 8.00% and senior citizens plus getting 8.05% on this tenure, with rates ranging from 3.75% for 7-day deposits to 7.50% for 15-month deposits.
Union Bank of India made interest rate revisions across all tenures, with depositors earning 6.65% on FDs with a tenure of 555 days. As reported by The Economic Times, the bank's revised structure shows rates ranging from 2.70% for 7-14 day deposits to 6.65% for 555-day deposits. The bank offers senior citizens 7.15% on this tenure, with rates varying from 3.00% for 31-45 day deposits to 6.15% for 445-554 day deposits.
Punjab National Bank offers its highest FD rate of 6.6% for a tenure of 444 days, with senior citizens earning 7.1% and super senior citizens getting 7.4% per annum. According to The Economic Times, the bank's revised structure shows rates ranging from 3% for 7-14 day deposits to 6.6% for 444-day deposits. The bank previously offered 1-year FD at 6.1% and 390-day FD at 6.3%, with rate adjustments across various tenures.
The RBI's latest policy decision comes amid revised economic projections, with the central bank lowering its real GDP growth forecast for 2026-27 from 6.90% to 6.60% and projecting inflation at 5.10% for the same period. According to the meeting minutes, MPC member Deputy Governor Poonam Gupta similarly backed a pause, saying she did not see a case for tightening policy when growth is expected to slow and inflation has not yet become entrenched. The committee members broadly concluded that waiting for more clarity on the duration of the West Asia conflict and its economic impact was preferable to acting prematurely. Deputy Governor Poonam Gupta emphasized that "it would be prudent to adopt a wait and watch approach rather than make an early or preemptive policy pivot," while noting that the inflation shock remains largely supply-driven and its persistence is still uncertain.
