Despite the Reserve Bank of India’s (RBI) repo rate cuts, deposit rates in India continue to remain high, affecting banks’ cost of funds. This has resulted in a scenario where home loan borrowers are benefiting from lower interest rates, while depositors are experiencing limited gains. The high deposit rates are a consequence of investor shifts and liquidity pressures in the market. Financial experts are predicting further repo rate reductions in the future, but they also believe that the transmission of these cuts to deposit rates will 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 banking sector navigates through these challenges, it is essential for both borrowers and depositors to stay informed about the evolving interest rate landscape in order to make prudent financial decisions.