Despite the Reserve Bank of India’s (RBI) repo rate cuts, deposit rates in India continue to remain high, affecting the cost of funds for banks across the country. This discrepancy has resulted in a situation where home loan borrowers are reaping the benefits of lower interest rates, while depositors are experiencing limited gains. The high deposit rates are being attributed to investor shifts and liquidity pressures faced by banks. Financial experts are predicting further repo rate cuts in the future; however, they believe that the transmission of these cuts to deposit rates will be a gradual process. This transmission process is expected to be influenced by various factors such as banks’ liquidity coverage and the RBI’s policy stance. As the banking sector navigates through these challenges, both borrowers and depositors will need to closely monitor the market dynamics to make informed financial decisions.