Whether you have a home loan, car loan, or personal loan, the RBI's policy decision can influence your monthly EMIs. It can also impact the interest you earn on fixed deposits and savings, borrowing costs for businesses, and even the prices of goods and services over time

When RBI cuts the repo rate, it makes the borrowing for banks cheaper and they consequently, lower their lending rate to customers. Conversely, when RBI increases its rates, it makes borrowing for banks expensive and banks also increase their lending rates to customers