RBI to cut interest rates for most borrowers
The Reserve Bank of India on Wednesday will cut interest rate on its secured loan and guaranteed loan by 25 basis points to 6.5%, effective from April 20.
The central bank’s policy for all its loans and guaranteed deposits is set at the present rate of 3.5%.RBI had earlier reduced interest rates on its securities, loans and guarantees by 10 basis points in the current fiscal to 3.25%.
The bank has also announced a series of measures to help the unbanked and underprivileged sections, particularly in the rural areas, particularly to boost employment in the next three years.
The policy for most of its securities is set by the central bank at 3.75%.
For its guarantees, RBI has also reduced interest rate to 4% on its own securities and 1.5% on loans from the government.
The central bank also has set a target to provide 5% interest to its deposits by 2020.