: Indians are yet to fully receive the benefits of RBI’s coronavirus relief measures #IndiaNEWS India’s central bank wanted to ease the pain for Indians struggling with job losses and pay cuts when

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Indians are yet to fully receive the benefits of RBI’s coronavirus relief measures #IndiaNEWS
India’s central bank wanted to ease the pain for Indians struggling with job losses and pay cuts when it announced a moratorium on loan repayments and slashed its lending rates to record lows earlier this year. But banks, it seems, are not on-board with the Reserve Bank of India’s efforts.Most banks in India haven’t fully passed on the benefits of lower repo rates to borrowers.In fact, they haven’t even given their customers the full benefit of the repo rate cuts that happened before the Covid-19 outbreak in March.Between February 2019 and May 2020, the cost at which banks borrow from the RBI fell by 225 basis points. But in the same period, the weighted average lending rate, which is the interest paid by individuals and businesses on bank loans, has dropped by 151 bps on the fresh loans and just 37 bps on existing loans. Mortgage borrowers – predominantly mid-income and facing the heat of an economic slump – are still paying relatively higher interest costs. Tushar Borhade, an IT professional, who has taken a home loan from India’s largest lender State Bank of India, said his interest rates have dropped only marginally over the last year. “Every time the RBI cuts rate, the bank only passes on the benefit by five...Read more

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