RBI passes the repo rate cut to the borrowers

Reserve Bank of India has decided to reduce the repo rate by 75 basis points. This must pass to the entire customers, and this will come from effect 1st April.

The lender has reduced the interest rate and made the bulk deposits between 20 bps to 100 bps.

While responding, the RBI’s extraordinary monetary policy bank passes 75 basis points (bps), and borrowers linked the external benchmark also as this bank said in a statement.

EBR also has been reduced to 7.05 percent and before it was 7.80 per annum. RLLR also has reduced from 7.40 to 6.65 per annum.

The lender stated that as per the current reduction in lending rate, all EMIs are linked with EBR or RLLR, and it will be cheaper Rs 52 per Rs 1 lakh.

The asset-liability committee (ALCO) said that the marginal cost will be taken as per the lending base rate and they also will have a meeting next month.

This has announced this Friday, where RBI reduced 75bps, and this is the highest cut in these 15 years. The Repo rate also decreased 100 basis points in March 2004.

RBI has announced monetary policy this Friday, where they have mentioned additional liquidity. It also has an interest rate structure, which can be useful from 28th March.

They are also cutting the interest rate on retail deposit 20 bps to 50 bps, and bulk deposit rate has been reduced to 50 bps to 100 bps.

They allowed the moratorium for three months, and this is applicable for all regional and commercial banks.

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