why the benefits of lower interest rate have not peculated to home loan customers

Feb 10: The Reserve Bank of India (RBI) has asked the
commercial banks to explain why the benefits of lower interest rate have not peculated to home loan customers despite the cut in repo and reverse repo rates.

Buzz uSpeaking for the people, who are struggling to pay the
high interest rates, the central bank on Wednesday, Feb 10
sent a letter to the Indian Banks' Association (IBA) seeking
higher transparency of home loan rates.


RBI, which wants to know if the banks are violating norms by
discriminating between old and new customers, has also threatened
action against the bank if its letter doesn't get a reply.

The banks are reportedly not giving the benefits to the old customers.

Besides, the RBI cut reverse and repo rates thrice during the
first three months of 2009 so that the bank could cut down
the lending rates to help the customers.