Push Banks To Transmit Rates Cuts To The Borrowers

Rohit Gera, Managing Director, Gera Developments Pvt Ltd   ''The move by the Reserve Bank is welcome however banks have been reluctant to reduce lending rates proportionately for similar actions by the RBI in the past.  Mortgage rates have come down 50 to 70 basis points while the repo rates have dropped by over 200 bps.  Unless the RBI strictly monitors and pushes banks to transmit these rates cuts to the borrowers, the move will not have the required impact on the economy.  We need to drastically and aggressively lower interest rates to kick start the economy''.