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  • Category: Miscellaneous

    Banks are not passing on the benefits to customers

    Recently, RBI in its monetary policy announced rate cuts which means banks will get funds from RBI at a reduced rates.

    In such cases generally the banks also reduce rates on the loans and benefit is passed on to the customers. But there is no sign of such a gesture from any of the banks in our country. In fact they are telling that their maintenance, infrastructure and running costs are increasing and it is not possible for them to reduce the interest on loans.

    So even after rate cut customer is not benefited. What do you think about this matter? What could be the reasons for banks not resonating with RBI rate cuts.
  • #658672
    Yes, the author is 100% correct. Whenever the RBI reduces the rates, the banks show extreme reluctance to follow. In case of private sector banks, they even charge a considerable amount to reduce home loan rate of interest in case of the floating rate. This is my own bitter experience.
    Come on, have a fight. Don't shoot and scoot.

  • #658678
    There should not be any difference between the banks in India. All should have the same set of rules and regulations and the interest rates charged for deposits and loans. RBI being the bank of bankers, it should effectively take charge of the banks and set them right.
    No life without Sun

  • #658679
    The LIC housing finance today send me an email saying that the interest rate on my housing loan is increased by 0.25% with immediate effect. Actually, when the RBI is giving some concessions to the banks they should pass on that benefits to the customers. But it is not happening. The people are getting pressurised to pay higher interest rates. RBI should bring in some system wherein the customers will get benefitted with the help that is being passed on to the banks by RBI. Otherwise, banks are taking those benefits and trying to increase their profits. The private banks are very more into this.
    always confident

  • #658734
    It is surprising that banks are not passing on the benefits t customer in the name of increase cost of operations. Then what is the use of RBI cutting rates.
    Thoughts exchanged is knowledge gained.

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