All banks need to swiftly pass on rate cut to customers: RBI report

It may be mentioned here that several large banks, including SBI, Bank of Baroda & HDFC Bank, have already passed on rate cut to borrowers

- OUR CORRESPONDENT

MUMBAI: A RBI report has suggested that all banks should bring down their lending rates for speedy transmission of the policy rate, which was lowered by 50 basis points earlier this month.

An article published in the Reserve Bank's June Bulletin stressed that the financial conditions remained conducive to facilitating an efficient transmission of rate cuts.

Most of the banks have already passed on the rate cuts announced in February and April to their customers.

It may be mentioned here that several large banks, including SBI, Bank of Baroda, and HDFC Bank, have already passed on the benchmark lending rate-linked interest rate to borrowers by the same margin within days of the RBI cutting repo rate by a jumbo 50 bps on June 6.