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No rate reduction by 70 banks despite 2 cuts by RBI

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Benefit to the customers have not been passed by the 70 banks from RBI two rate cuts till now in 2015. Repo rate was cut by 0.25% by Reserve Bank Of India in 2015 in January and further 0.25% on march 2015.

Totally there are 91 commercial banks in India. Out of those only 21 banks had lowered the base rate. This information was given by Minister of State for Finance Mr Jayant Sinha.


  • The banks include 4 public sector banks, 6 private sector banks and 11 foreign banks.
  • The reduction in base rates are in the range 0.1 to 0.5% so far.
  • The weighed average lending rates on fresh rupee loans given by banks for vehicle and housing loans have come down in the range of 8.53 basis points.
  • There are 27 public sector banks, 20 private sector banks, 44 foreign banks with commercial bank licence.
  • Reserve Bank Governor Mr Raghuram Rajan in the RBI’s last monetary policy meeting, was very critical of banks for not passing on the rate cuts to the borrowers.
  • Recent study paper from IMF, reveals that banks in India resist passing on the RBI’s rate cuts to the customers.


  • RBI is India’s central banking institution.
  • It controls the Monetary Policy of Indian Rupee.
  • RBI was founded in April 1st 1935.
  • The present Governor is Mr Raghuram Rajan.


  • IMF was established in 27th December 1945.
  • It is an International Financial Organisation based at Washington D.C. USA.
  • The present Managing Director of IMF is Mr Christine Lagarde of France.
  • IMF has 188 countries as its members.