By Lakshmi Venkataraman Venkatesan, Founding and Managing Trustee, Bharatiya Yuva Shakti Trust, said,
“The RBI’s decision to maintain the repo rate at 5.25% reflects a calibrated approach as economic growth remains resilient while emerging inflationary pressures require continued vigilance. With MSME Amendment Bill 2026 also on the table, this monsoon session, near-term policy stability provides valuable predictability in managing borrowing costs, working capital, repayments and investment decisions for micro and small entrepreneurs. However, the benefits of an unchanged policy rate will depend on effective transmission by banks and financial institutions. Many first-generation entrepreneurs continue to face challenges in accessing timely and affordable working capital despite being part of the formal credit system. Stable credit conditions must also be supported by timely payments to micro and small enterprises, as affordable credit alone cannot ease cash-flow pressures when businesses do not receive payments on time. The priority should be responsive working-capital support, appropriate repayment structures and mentoring-led guidance that enables entrepreneurs to manage costs, strengthen financial discipline and make informed growth decisions. Predictable finance, timely payments and sustained business support together can strengthen enterprise resilience, confidence and job creation.”