New Delhi, April 10: In a major relief to borrowers across India, the Reserve Bank of India (RBI) has announced a 0.25% cut in the repo rate, bringing it down to 6% as of April 9. Responding swiftly to the move, four prominent public sector banks — Punjab National Bank (PNB), Bank of India, Indian Bank, and UCO Bank — have reduced their lending rates by up to 0.25%.
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Lower EMIs for Borrowers
The rate cut is expected to benefit both existing and new customers with home, car, and personal loans. Reduced lending rates will result in lower EMIs and interest outflows, making borrowing more affordable for the common man.
The RBI’s latest rate cut marks its first such move since February and ends a five-year pause in policy easing.
Public Sector Banks Revise Lending Rates
Following the RBI’s announcement, the public sector banks issued statements confirming the revision in their repo-linked lending rates:
- Indian Bank: Reduced its Repo-Linked Lending Rate (RBLR) by 35 basis points to 8.70%, effective April 11.
- Punjab National Bank (PNB): Cut its RBLR from 9.10% to 8.85%, effective Thursday.
- Bank of India: Also revised its RBLR from 9.10% to 8.85%, effective Wednesday.
- UCO Bank: Slashed its lending rate to 8.8%, effective Thursday.
More Banks Expected to Follow
Banking experts anticipate that other government and private sector banks will also follow suit by reducing their lending rates in the coming days. The move is seen as part of RBI’s efforts to stimulate credit growth and support economic activity.
RBI Governor Sanjay Malhotra emphasized that the repo rate reduction is aimed at enhancing liquidity and boosting consumer demand during a time of slowing global growth.
