The Delhi golfer now leads the pack at eight-under-208. Overnight leader Honey Baisoya, also from Delhi, slipped to second place at seven-under-209 as a result of his third round of 72.
Rashid (71-69-68) sounded a warning to his fellow competitors with a solid 68 that featured five birdies and a bogey.
Rashid, a two-time Asian Tour winner, lying in fourth place and three off the lead at the start of the round, made his move early in the day with birdies on the first and third holes.
The 25-year-old got his round back on track with a six feet birdie conversion on the 13th. He finally emerged sole leader for the day as he ended the round with a flourish with birdies on the last two holes.
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He could not convert a 20-footer for eagle on the 17th but managed to salvage a birdie there. He then signed off by sinking it from 15 feet on the 18th.
Second round leader Baisoya (72-65-72) lost ground today after a quiet 72 that saw him slip to second position. Baisoya, looking for his maiden PGTI title, finds himself in the final day leader group along with his good friend Rashid.
Bengaluru's Khalin Joshi, Sachin Baisoya of Delhi and Chandigarh's Sujjan Singh are in tied fifth at four-under-212. Gurgaon's Shubhankar Sharma is in tied 10th at one-under-215 while Bengaluru's Chikkarangappa is tied 28th at four-over-220.