 "\"After a prolonged period of stress, the banking sector appears to be on course to recovery as the load of impaired assets recedes\" Shaktikanta Das, RBI Governor")
Reserve Bank of India governor Shaktikanta Das has "passed the litmus test" by cutting the policy rate on Thursday, a leader of the economic wing of the powerful Hindu nationalist group Rashtriya Swayamsevak Sangh, told Reuters.
The rate cut will politically benefit Modi's government as it would boost economic growth and lending to small businesses, Ashwani Mahajan, co-convenor of the Swadeshi Jagran Manch, said.
The central bank unexpectedly lowered interest rates and, as anticipated, shifted its stance to "neutral" to boost a slowing economy after a sharp slide in the inflation rate.
