RBI Asks Banks To Cut Lending Rates, Pass On Benefit To Borrowers

20 March, Mumbai

Reserve Bank of India Friday said it expects banks to cut the lending rates as the apex bank has already lowered the interest rates twice in quick succession.

RBI, in very short period of time, has cut repo rate twice. It is expected from the bankers that they pass on the benefits (to consumers), Reserve Bank Deputy Governor, S S Mundra said here.

The Reserve Bank has lowered interest rates by 0.5 per cent since January 2015, but banks are yet to pass on the benefits to borrowers. The latest cut was done on March 4 when RBI reduced the repo rate from 7.75 per cent to 7.5 per cent