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Sticky bank deposit rates are muddling the transmission process
October 7, 2019 | By Livemint.com
business
One explanation is that banks have become cautious after having experienced a fight to get deposits.Another explanation is that household savings have not been growing as they were, and avenues for parking savings have increased
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The Reserve Bank of India (RBI) has always bemoaned the lack of transmission of its policy rate cuts on to banks lending rates. A big enabler of transmission is the movement of deposit rates, which is the biggest source of funding for banks. Unlike non-bank
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