Finance Ministry to monitor rate-cut transmission by public sector banks

RBI Governor Shaktikanta Das had expressed concerns over the slow transmission of interest rates to benefit customers, despite successive policy rate cuts

The finance ministry is closely monitoring the transmission of monetary policy rates at public sector banks (PSBs) and is collating data on the lending rate cuts effected by banks, following a series of rate cuts by the Reserve Bank of India (RBI), a finance ministry official said.

Sources said the concerns related to slower monetary rate transmission were raised in the 20th meeting of the Financial Stability and Development Council, chaired by Finance Minister Nirmala Sitharaman, on June 19, where all the financial regulators were present. In the aftermath of the meeting, the Department of Financial Services, under the finance