Interest Rate Cut: After the cut in Repo Rate, these 2 banks gave a gift to their customers,

Interest Rate Cut: Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday cut the repo rate by 25 basis points in the first monetary policy meeting of the new financial year. As a result, the repo rate has now been reduced from 6.25 percent to 6.00 percent. And a few hours after the announcement of this repo rate cut, the country’s two state-owned banks also reduced interest rates on loans for their customers. This will provide a lot of relief to new and existing borrowers.

After the repo rate cut on Wednesday, two leading public sector banks, Bank of India and UCO Bank, have also reduced interest rates on loans. The repo rate has been cut by 25 basis points to 6 per cent from 6.25 per cent after the approval of the central bank’s monetary policy committee chaired by new RBI governor Sanjay Malhotra. This is the second time the repo rate has been cut under the chairmanship of Sanjay Malhotra.

Governor Sanjay Malhotra has said that the decision has been taken to try to tackle the economic chaos in the country and stabilize the economy due to the global economic chaos due to US President Donald Trump’s imposition of 26 percent tax on India.

Punjab National Bank

After the reduction, Punjab National Bank has reduced its RBLR. Due to which its new interest rate has become 8.85 percent . Earlier the bank used to charge 9.10 percent interest rate on loans.

Indian Bank

Indian Bank has also reduced the loan interest rate. This decision has been taken after the reduction in repo rate. The bank has reduced its RBLR by 0.35 percent. Now the new interest rates of Indian Bank have become 8.70 percent . These new rates will be implemented from tomorrow i.e. 11 April. Apart from these two banks, UCO and Bank of India have also reduced the interest rates. The new loan interest rate of UCO Bank has come down to 8.8 percent .

Why did RBI cut the repo rate?

This year, for the second consecutive time, RBI has cut the repo rate. The Reserve Bank of India revises the repo rate every two months in a year. In February 2025, it happened after 5 years that the repo rate was cut. Both these MPC meetings have been held under the leadership of new governor Sanjay Malhotra.