RBI: Strong Transmission of Repo Rate Cuts to Lending

The Reserve Bank of India (RBI) cut interest rates, and this reduction has been passed on to people and businesses that borrow money.

This means that the cost of taking out a loan has gone down.

The decrease in interest rates has been noticeable for new loans and deposits.

However, loans linked to the MCLR benchmark, which is based on a bank's cost of funds, have seen a slower change.

While borrowers are benefiting, some experts note that loan rates may not have decreased as much as expected, especially when compared to the bond market, but new borrowers are seeing more substantial reductions.