Rashid's total stands at seven-under 137 at the halfway stage. Abhinav Lohan of Faridabad sparkled with a bogey-free 65 to stay one stroke behind the leader in tied second place along with Harendra Gupta of Chandigarh who shot a 70.
The cut was declared at four-over-148. Fifty-two professionals made the cut.
Rashid Khan (66-71) managed to hang on to his overnight lead after posting four birdies and three bogeys in round two.
Khan had a slow start to the day as he made pars on the first six holes and bogeyed the seventh after finding the hazard. He got back to level-par for the day, thanks to a fine approach shot on the ninth that set up a seven feet birdie putt.
Rashid then made three-putts on the 10th and 11th to drop bogeys on both the holes.
The 21-year-old from the Delhi Golf Club made three birdies on the next five holes to end the day at one-under. His last birdie of the day was a result of a chip-in on the 16th hole.
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"I did not putt well today. I couldn't convert my opportunities on the greens unlike round one. I lost my way in the middle stages of the round with those two three-putts. However, I managed to comeback well after that to close the day with an under-par score," said Rashid.
Abhinav Lohan (73-65) followed up his first round effort of 73 with a contrasting 65 in round two to climb from overnight tied 36th to tied second place. MORE