There is definitely a case for bigger and faster transmission of rates: Das

"It is necessary to have An effective interaction between the government and the RBI in the interests of the economy and the overall financial sector"

Reserve Bank of India Governor Shaktikanta Das tells Anup Roy, Raghu Mohan and Niraj Bhatt that it is time for banks to lower interest rates and start lending to cash-starved finance companies after due credit appraisal and proper risk assessment. Edited excerpts:

Why are policy rate cuts not being transmitted to lending rates at banks?

The cost of funds of banks is one of the factors, which impacts lending rates. Banks are gradually recovering from stress in their balance sheets due to overhang of non-performing assets (NPAs). Going forward, I don’t think NPAs will be a major impediment in transmission of the