As per RBI Norms Banks reduces rate of interest
The Economic Affairs Secretary Shakthikanta Das has told that the banks are anticipated to cut the interest rates over the next few days in light of recent monetary policy which was made at ease and he has also told that Banks are autonomous bodies and presently the government have provided with strong signal by maintaining the fiscal deficit by 3.5% and resetting small savings plan.
Das has told on the sidelines of the report that one can anticipate banks to take a policy call and it will be done within few days or weeks. The RBI its first bi-monthly policy review of the current fiscal on April 5th and cuts the interest rates by 0.25% and has introduced a host of measures to smoothen liquid supply to help banks lend money to productive sectors and has indicated an accommodative stance.
Das anticipates that the banks will do more effective transmission of rates and he is also anticipating banks to take action in that matter. He has further added that India is moving towards a low interest rate regime as presently inflation is under control.
He is looking forward at lower interest rates as inflation is under the control and the government has taken many steps. Even the Finance Minister Arun Jaitley has said that India should move at a lower interest regime by sticking to the fiscal deficit of 3.5%.