The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) announced a 25 basis points cut in repo rate in its second bimonthly policy review of this financial year.
After the cut, the repo rate now stands at 5.75% - the lowest since July 2010.
Market participants and economists see a rate cut crucial at this point in time as the economy has been witnessing signs of slowdown.
The rate cut by the RBI means a drop in the cost of funds for individual and corporate borrowers.
However, banks have not been very efficient is passing on the benefits of the recent rate cuts to their customers.
On the contrary, a number of banks have raised their deposit rates to mobilise funds
Will the latest rate cut spur on banks to pass on the benefits to individual and corporate borrowers?
Tune in to find out...
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