Despite the Reserve Bank of India’s (RBI) repo rate cuts, deposit rates in India continue to remain high, which is impacting the cost of funds for banks. This situation has created a scenario where home loan borrowers are benefiting from lower interest rates, but depositors are seeing limited gains due to shifts in investor behavior and liquidity pressures. Financial experts in the country are predicting further repo rate cuts in the future. However, they also believe that the transmission of these rate cuts to deposit rates will happen gradually, and will be influenced by factors such as banks’ liquidity coverage ratios and the central bank’s policy stance. The current economic climate in India is keeping the banking sector on its toes, as they navigate through these challenges while trying to maintain profitability and attract both borrowers and depositors. Stay updated with the latest financial news to make informed decisions regarding your investments and loans.