Bank need not reduce the rate of interest on the deposits they took immediately after repo rate reduction as there is no impact of this rate on our deposit rates.
K Mohan @ Moga
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
The lockdown has made the money availability less . So Reserve and government want people to have more money. So they encourage Banks to give loans at low interest which will attract people and business to take loan for their business workiing and expansion. Now because payments are not coming to banks, Banks need money to lend. By decreasing Repo rate they will be able to borrow money from RBI and lend to their customers loans at low interest. This will make more money in the market helping business and economy to grow.
Thoughts exchanged is knowledge gained.
Knowledge is power.