This week in Indian law: The RBI delivered a significant 50 basis point cut in the repo rate to 5.50%, the largest single reduction in the current easing cycle, while also reducing the CRR by 100 basis points. MeitY published the consent management framework under the DPDP Act. The Supreme Court remains on summer vacation. 4 significant legal developments this week across regulatory and technology law.
Top story
RBI Slashes Repo Rate by 50 Basis Points to 5.50 Per Cent
Category: regulatory-updates | Date: 6 June 2025 | Source: RBI
The Reserve Bank of India's Monetary Policy Committee, under Governor Sanjay Malhotra, reduced the policy repo rate by 50 basis points to 5.50% — the largest single cut in the current easing cycle. The MPC also reduced the Cash Reserve Ratio (CRR) by 100 basis points, injecting significant liquidity into the banking system. The stance was changed from accommodative to neutral, signalling that the bulk of the easing cycle may be nearing its conclusion.
Cumulative rate reductions in 2025 now total 100 basis points (25 bps in February, 25 bps in April, and 50 bps in June), making this one of the most significant monetary easing episodes in recent RBI history.
Why it matters: The 50 bps cut will translate into meaningful reductions in lending rates across home loans, corporate credit, and retail finance. Banks must adjust their external benchmark lending rates (EBLR) immediately. The CRR cut injects additional liquidity, easing short-term funding costs. The shift to neutral stance suggests borrowers should lock in current rates before the easing cycle concludes.
Read more: Veritect analysis
Regulatory updates
MeitY Issues Consent Management Blueprint Under DPDP Act
Date: 6 June 2025 | Source: MeitY
The Ministry of Electronics and Information Technology published the consent management blueprint under the Digital Personal Data Protection Act, 2023. The guidance document outlines the operational framework for consent managers — a new category of intermediary created by the DPDP Act to facilitate data principal consent across data fiduciaries. The blueprint covers registration requirements, technical standards for consent dashboards, interoperability protocols, and grievance handling obligations.
Key point: Companies planning to register as consent managers under the DPDP Act now have substantive guidance on technical and operational requirements. Data fiduciaries should evaluate whether their existing consent mechanisms align with the new framework.
Also this week
- SC vacation continues — The Supreme Court's summer vacation remains in effect, with limited vacation bench activity on urgent matters.
- SEBI master circular preparation — SEBI is expected to issue consolidated master circulars for various categories of intermediaries in the coming weeks.
By the numbers
- 100 bps — Cumulative repo rate reduction in 2025 (February + April + June)
- 5.50% — Current repo rate, the lowest since the post-COVID easing
- 50 bps — Single cut in June, the largest in the current cycle
- 100 bps — CRR reduction, injecting significant liquidity into the banking system
Looking ahead
- June 9-15: SEBI master circulars expected; RBI digital lending norms update
- June 12: Gujarat GST amendment ordinance — state-level regulatory action
- June-July: DPDP Act implementation continues; SC vacation through early July
This is the Veritect Weekly Legal Roundup for Week 23 of 2025. For daily updates, visit our legal news page. Subscribe to receive this roundup every Monday morning.
Veritect provides this content for informational purposes and does not constitute legal advice.