The central bank, however, kept monetary policy stance at ‘neutral’.
In the second policy review under Governor Shaktikanta Das, the six-member Monetary Policy Committee voted 4:2 in favour of the rate cut.
The benchmark interest rate was cut by 0.25 per cent to 6 per cent, a move that will result in lower cost of borrowing for the banks that are expected to transmit the same to individuals and corporates.
The RBI had on February 7 had last cut interest rate to 6.25 per cent from 6.5 per cent.
Last time repo rate stood at 6 per cent was in April 2018.
The rate cut is in consonance of achieving the medium term objective of maintaining inflation at the 4 per cent level while supporting growth, RBI said in a statement.