RBI still has room to slash key rate in current fiscal: Kidwai

The Reserve Bank still has room to cut the key policy rate in the current fiscal, veteran banker Naina Lal Kidwai has said, while stressing that banks should pass on the benefits of lower rates to customers.

RBI reduced the repo rate by 0.25 per cent to 6 per cent earlier this month, citing reduction in inflation risk. The rate cut was the first in 10 months and brought policy rates to near 7-year low.

"There is clearly room for further rate cuts. But the rate cut from RBI is not good enough. The rate cut has to happen from the way banks engage with industry, and that is a function on how efficient the banks are, what are their NPAs, their losses," Kidwai told

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)