The Reserve Bank of India (RBI) has been cutting the repo rate, but deposit rates in banks across India continue to remain high, affecting the cost of funds for these financial institutions. This disparity means that while borrowers, especially those with home loans, are benefiting from lower interest rates, depositors are not seeing significant gains. The situation is further complicated by investors shifting their focus and liquidity pressures in the market. Financial experts are predicting more repo rate cuts in the future; however, the transmission of these cuts to deposit rates is expected to be slow and gradual. This is due to various factors such as banks’ liquidity coverage ratios and the overall policy stance of the RBI. The impact of these high deposit rates on the banking sector in India is significant, with both banks and customers closely watching the developments in the market. As the RBI continues its efforts to stimulate economic growth through monetary policy measures, the banking industry is likely to see further adjustments in interest rates in the coming months.