by K Paul Thomas, MD & CEO, ESAF Small Finance Bank

The RBI’s decision to cut the repo rate to 6.25% is a welcome move, complementing the Union Budget’s focus on economic growth and financial empowerment. The increase in the income tax exemption limit further strengthens this outlook by boosting disposable income, especially for middle- and lower-income segments. Such policy measures play a crucial role in shaping the financial ecosystem, strengthening rural credit, controlling inflation and promoting inclusive banking. As a bank deeply committed to empowering underserved communities, we see this as an opportunity to enhance liquidity, support entrepreneurial growth, and strengthen financial inclusion—aligning with the government’s broader vision for sustainable and inclusive development.