RBI governor Sanjay Malhotra announced a 25 basis points cut in the benchmark repo rate to 6.25%, the first reduction in five years.

Retail borrowers who have taken floating rate loans will see their EMIs shrink as banks pass on the benefit of lower repo rate to end consumers

The Reserve Bank of India's (RBI) six-member Monetary Policy Committee (MPC) cut the repo rate by 25 basis points to 6.25% on Friday. This is the first time in five years that the RBI has lowered the rate at which it lends to banks.