While the RBI in consultation with the Minsitry of Finance have been kind enough to reduce interest rates for the economy in general, the banks have not passed the benefit on to the consumers who are grappling with the uncertainty of cashflows and the threat of Covid -19. 

The RBI's benchmark rates have been reduced by ~200 bps over the last 2-3 months whereas the banks have not passed even an iota of this benefit to the consumers.

The RBI and Ministry of Finance need to direct the banks to pass this benefit of lower interest rates or penalize the banks that do not do that. The setting of the benchmark rates by the banks also needs to be made a transparent mechanism so that consumers know how the charges are being applied to them.

I have had a situation that even after giving clear email instructions to the bank to move my home loan to a Repo rate based interest rate, the bank changed the basis of calculation of my homeloan rate to 6 month MCLR and even charged my account Rs 5000 for the same. This harakiri by the banks must stop.

I have been affected despite being from the financial services field so I can imagine what the common people without knoweldge of the regulations must be going through.