Despite the Reserve Bank of India’s (RBI) repo rate cuts, deposit rates in India remain high, which is impacting banks’ cost of funds. This situation has led to a scenario where home loan borrowers are benefiting, but depositors are seeing limited gains due to investor shifts and liquidity pressures in the market. Financial experts are anticipating further repo rate cuts in the future; however, the transmission of these cuts to deposit rates is expected to be gradual. This transmission process will be influenced by various factors such as banks’ liquidity coverage and the RBI’s policy stance. The high deposit rates are creating challenges for banks in managing their cost of funds effectively. It is crucial for banks to strike a balance between attracting deposits and offering competitive lending rates to customers. As India’s economy continues to navigate through these challenging times, the RBI’s monetary policy decisions play a crucial role in shaping the interest rate environment in the country. Stay updated with the latest developments in India’s banking sector to make informed financial decisions.