The Reserve Bank of India has cut down the policy rates on April 21, 2009. This will ensure that the banks will cut down the interest rates too. The RBI cut down the reverse repo rate from 3.5% to 3.25%.

Speaking to the media persons, the RBI Governor D Subba Rao said: “The further policy rate cuts effective as a part of this policy should be a definitive signal for reducing lending rates.” Subba Rao said that the