But even this needs to be qualified: the banks cut the average rate only on fresh rupee loans. The WALR on the outstanding rupee loans actually rose by 4 basis points. The RBI governor, Shaktikanta Das, believes that the pace of policy rate transmission will pick up. In the past, the so-called pass through of rate cut benefits to the banks’ customers has taken four to six months. The bankers want the Centre to cut the small savings rates so that they can compete.

Source: The Telegraph June 11, 2019 03:45 UTC