RBI to ask banks to pass on rate-cut benefits to borrowers

The Reserve Bank of India (RBI) plans to talk with lenders about passing on benefits of the cuts in repo rate to borrowers through lower lending rates, the central bank's Deputy Governor SS Mundra said on Friday.

Most banks have yet to lower their lending rates even after the RBI has cut the repo rate by a total of 50 basis points in 2015 so far.

Mundra, addressing reporters on the sidelines of an event in the national capital, also said the government and the RBI were still discussing issues related to the creation of an independent public debt management agency, including the timing.

The RBI executive also reiterated that the country is better prepared to deal with any impact from eventual rate hikes by the US Federal Reserve .

(Reuters)