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The RBI cut the repo rate to 6% on April 9, leading Punjab National Bank, Bank of India, Indian Bank and UCO Bank to lower lending rates by up to 0.25%, reducing EMIs for borrowers
RBI Governor Sanjay Malhotra announced the reduction in the repo rate on April 9, bringing it down to 6 percent. (Representative/Shutterstock)
The Reserve Bank of India (RBI) has announced a reduction in interest rates as of April 9. Following this, four major government banks in the country have also lowered their lending rates. This move will result in lower interest payments for the common man on various loans, including home and car loans, as well as a reduction in existing EMIs.
The four government banks that have implemented the rate cuts are Punjab National Bank, Bank of India, Indian Bank, and UCO Bank, with reductions of up to 0.25 percent.
This decision will benefit both existing and new borrowers of these banks. Similar announcements are anticipated from other banks shortly. Earlier, the RBI had reduced the key policy rate, the repo rate, by 0.25 percent, bringing it down to 6.0 percent.
In separate notifications to the stock markets, these public sector banks confirmed the revision in loan rates following the RBI’s cut in the short-term lending rate (repo rate). Indian Bank, based in Chennai, announced that its repo-linked standard lending rate (RBLR) will be reduced by 35 basis points to 8.70 percent, effective from April 11.
Punjab National Bank (PNB) stated that its RBLR will be revised from 9.10 percent to 8.85 percent, effective Thursday. Bank of India also adjusted its RBLR to 8.85 percent from the previous 9.10 percent, with the new rate taking effect from Wednesday. UCO Bank has reduced its lending rate to 8.8 percent, effective from Thursday.
RBI Governor Sanjay Malhotra announced the reduction in the repo rate on April 9, bringing it down to 6 percent. The last time the RBI had cut the repo rate was in the February policy, marking the first reduction in five years.
