SBI Chairman CS Setty confirmed lending rate revision after RBI’s 25 bps repo rate cut. However, deposit rates may not decrease immediately as banks assess credit demand. Know more on how RBI’s monetary policy impacts deposit and lending rates.

The move is expected to boost sectors such as real estate, which depends heavily on loans for its consumers to make a purchase.

The RBI's recent 0.25 percentage point cut in the repo rate is under close government scrutiny to ensure banks pass this benefit to consumers. The cen

The Reserve Bank of India (RBI) reduced its key repo rate on Friday for the first time since May 2020, aiming to provide stimulus to the sluggish economy, which is projected to grow at its slowest pace in four years during the current fiscal year.

The Reserve Bank of India (RBI) recently reduced the repo rate by 25 basis points to 6.25%. Reports suggest a further 50 basis point cut is likely in 2025. A total reduction of 75 basis points is anticipated this year.

EMIs on home and vehicle loans will come down, making it easier for individuals to repay their debts. A lower repo rate makes borrowing cheaper for individuals and businesses, which can lead to increased spending and investment.

The repo rate, set by the RBI, influences borrowing costs for banks. A higher repo rate raises FD interest rates, attracting deposits, while a lower rate reduces FD returns by making borrowing cheaper.

In addition to the repo rate cut, the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) rates have also been reduced by 25 bps to 6% and 6.5%, respectively. The bank rate has also been adjusted to 6.5%.

The interest rates on savings accounts have been drastically reduced by RBL Bank, according to the banks official website. The new rates will go into effect on5, 2025.

The RBI’s repo rate significantly influences personal loan interest rates. A rise in the repo rate leads to higher loan costs for borrowers, while a cut may lower rates, making loans more affordable.