RBI wants banks to cut base rates, not select lending rates

With banks led by the country's largest lender SBI choosing to cut spreads on certain categories of loans instead of the base rate, deputy governor Anand Sinha today said the Reserve Bank would like the banks to cut the minimum lending rate to better carry forward its monetary policy measures. "The base rate is supposed to be responsive to the changes in monetary conditions....Reserve Bank would definitely want the responses to be through the base rate," Sinha said at an IDBI Bank event here. ........

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