RBI to ask banks to pass on to customers benefits of lower policy interest rates

New Delhi, Feb 18 (IEBusiness) The Reserve Bank of India on Monday said the central bank will ask all lenders to pass on the benefits of lower policy interest rates to customers.

“It is very important that all banks pass on the benefits of lower policy interest rates to customers. We will look into the issue in the next meeting with all public and private sector banks scheduled to be held on February 21,” RBI Governor Shaktikanta Das told reporters here.

Mr Das was addressing media along with Finance Minister Arun Jaitley after chairing the RBI Board Meeting.
This is a customary meeting held every year after the presentation of the Union Budget in Parliament.

There are reports that banks have lowered lending rates by only 5 basis points though the RBI have announced rate cut by 25 basis points in early February.

On issue of dividends, Mr Das said the RBI would announce the dividends once it was decided by the central Board of the Bank.

“I cannot pre-judge what the board will decide on dividends,” he said.

However, sources said the Board is meeting later in the evening to take decision on the dividends issue.

Via UNI-India

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