New Delhi, Nov. 3 -- The Reserve Bank of India (RBI) raised the policy repo rate by 25 basis points to 5.50% at its Monetary Policy Committee (MPC) meeting on 7 October 2026. This was the central bank's first rate hike in 44 months, after it last raised the repo rate to 6.50% in February 2023.

The repo rate is the interest rate at which commercial banks borrow short-term funds from the RBI. A change in this rate can influence banks' lending and deposit rates. Following a repo rate hike, a few banks have revised their fixed deposit (FD) interest rates to attract deposits and manage their funding requirements.

However, FD rate revisions are not automatic and depend on individual banks' decisions. For depositors looking to lock in returns,...