But moving away from bank specific benchmark lending rates could improve transmission over the long run

The RBI holding rates, though widely expected, has brought little cheer to borrowers. After the sharp fall in the beginning of the year, banks in any case, have only been tinkering with their benchmark lending rates. Even after the 25 basis point cut in policy rate in the previous August policy, only a few banks trimmed their lending rates. At best borrowers can see some pass through of the cut i...