1. The Retail Inflation in India September 2025.
- Retail inflation: 1.54% (lowest since 8 years; decreased to 2.07% in August 2025)
- Rural inflation: 1.07% | Urban inflation: 2.04%
- Food inflation: -2.28 (fourth month of deflation in a row)
- Inflation in rural food: -2.17% urban inflation: -2.47%
- Rationale: positive base effect, decreased prices of vegetables, fruits, pulses, cereals, edible oils.
- Ministry note: Well-developed supply chains, better crop yields, and controlled distribution relieved the strains on prices.
2. RBI permits the lending of the rupee to Bhutan, Nepal and Sri Lanka.
- Purpose: To promote regional trade, ease cross-border payments as well as internationalisation of the rupee.
- Applicability: India and foreign branch Indian banks may loan rupee-denominated funds to the residents and banks of Bhutan, Nepal and Sri Lanka.
- Regulatory framework: Amendments to FEMA ( Borrowing and Lending Regulations, 2018 )
- Additional measure: Unutilised FCY accounts in IFSCs - Extend period of repatriation of the accounts to 3 months instead of 1 month.
Impact:
- Assists the exporters and the financial integration of the regions.
- Sponsors the countries such as Sri Lanka with shortages of FX.
- Promotes the utilization of rupee in South Asia.
Month: Current Affairs - October 16, 2025
Category: BANKING, FINANCE and BUSINESS