Despite the Reserve Bank of India’s (RBI) repo rate cuts, deposit rates continue to remain high in India, affecting banks’ cost of funds. This scenario has resulted in a situation where home loan borrowers are benefiting from lower interest rates, but depositors are experiencing limited gains due to investor movements and liquidity challenges. Financial experts predict that there may be more repo rate cuts in the future; however, the transmission of these cuts to deposit rates is expected to be a gradual process. This transmission process will be influenced by various factors such as banks’ liquidity coverage ratios and the RBI’s policy stance. As the Indian banking sector navigates through these challenges, it is crucial for both borrowers and depositors to stay informed about the latest developments in interest rates and monetary policies to make informed financial decisions.