RBI wants banks to cut lending rates

RBI said the banks have not slashed their lending rates to the extent they should have.

RBI said the banks have not slashed their lending rates to the extent they should have in response to the softening of central bank’s key policy rates,amid the inflation rate hovering near zero per cent.

“The response of banking system (to the policy actions) has been positive…but banks are yet to respond as much as warranted by the policy,” RBI Governor D Subbarao said at a Ficci-organised seminar here.

After RBI cut its key-rates several times since October to hold off inflation and ease liquidity in the system,many banks have slashed their prime lending rates (PLRs) in the recent past.

Story continues below this ad

RBI reduced its repo rate and cash reserve ratios to 5 per cent each and reverse repo rate to 3.5 per cent.

State-owned Bank of India’s Chairman and Managing Director and Indian Banks Association Chairman T S Narayanasami had recently said banks are likely to lower their lending rates further by 0.5 per cent soon.

Tags:
RBI

‘Given stale food, locked up’: Truck cleaner on ‘abduction’ horror at Khedkar residence

Cities1 hr ago

A truck cleaner in Navi Mumbai was rescued by the police after being abducted by the father of a sacked IAS officer. The victim was held captive, given stale food, and threatened with murder. The accused demanded compensation for their damaged car and threatened to kill the victim if not paid. The accused have been charged with extortion and destruction of evidence.

View all shorts

Live Blog