India news 2026: RBI holds rates as monsoon shapes farm credit outlook

The Reserve Bank of India left benchmark rates unchanged at its June 2026 meeting, citing manageable core inflation while warning that food prices could swing with the approaching monsoon. Regional rural banks reported stronger demand for short-term Kisan credit lines as planting windows open in Maharashtra, Punjab and western states.

Meteorological agencies forecast near-normal rainfall nationwide, though El Niño watch statements prompted contingency plans in Karnataka and coastal Andhra Pradesh. Fintech lenders partnering with cooperatives said digital KYC pipelines cut smallholder disbursement times below prior-year averages.

Equity markets in Mumbai traded mixed as IT exporters weighed a softer rupee against stronger domestic consumption indicators. State governments are expected to announce farm input subsidies as monsoon onset dates firm up in the IMD bulletin.

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