The retail inflation based on the Consumer Price Index (CPI) was 5.59 per cent in July and 6.69 per cent in August 2020.
India is now on track to achieving the world's fastest growth this year.
WPI inflation remained in double digit for the third consecutive month in July, mainly due to a low base of last year. WPI inflation was (-) 0.25 per cent, in July 2020.
This is the seventh time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained status quo.
The RBI held the repo rate, its key lending rate, at 4% and kept the reverse repo rate, the borrowing rate, unchanged at 3.35%.
Counsel for the centre termed it as a policy matter and said he needed more time to respond.
The accounting year of RBI is truncated as the Reserve Bank of India (RBI) has aligned its July-June accounting year with the government's April-March fiscal year.
A technical upgrade of NEFT, targeted to enhance the performance and resilience, is scheduled after the close of business of May 22, 2021.
Das’s focus today was on relief for micro, small and medium businesses and individual borrowers who have been hit again by the second wave.
The bank authorities explained that the decision was based on a Reserve Bank of India directive on non-agricultural loans.