Despite the Reserve Bank of India’s (RBI) repo rate cuts, deposit rates in India remain high, impacting banks’ cost of funds. This situation has resulted in a scenario where home loan borrowers are benefiting, but depositors are seeing limited gains due to investor shifts and liquidity pressures in the market. Financial experts are predicting further repo rate cuts in the future; however, the transmission of these cuts to deposit rates is expected to be gradual. This transmission process will be influenced by various factors such as banks’ liquidity coverage ratios and the RBI’s policy stance. It is essential for banks to strike a balance between attracting deposits and lending at competitive rates to ensure profitability in the current economic climate. The high deposit rates have implications for both borrowers and savers, highlighting the delicate balancing act that financial institutions must maintain to navigate the evolving market conditions. Stay updated with the latest developments in the financial sector to make informed decisions regarding your investments and loans.