It can be noted that till the last rate cut of 0.35 percent, the banks have passed out only 0.29 percent of the 0.75 percent in rate cuts initiated by the RBI to the final borrowers.
SBI has lowered MCLR by 30 basis points since February while RBI reduced policy rate by 110 bps.
Rates on big savings accounts and some short-term loans will change with change in repo rate.
Addressing the media, Sitharaman also said that banks will pass on RBI rate cut benefits to borrowers through MCLR reduction.
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