Rashid, a two-time winner on Asian Tour, had three birdies against one bogey as he was five-under 135 and five shots off the lead in Tied-7th place.
Meanwhile, S Chikkarangappa, who was T-2 after the first round, shot even par 70 to slip to T-7 alongside Rashid.
Chikka shot even par 70 with two bogeys on front nine, which were made up with two birdies on back nine.
Four other Indians, Gaganjeet Bhullar (69-71), Viraj Madappa (71-69), Rahil Gangjee (71-69) and Chiragh Kumar (69-71) made the cut at even par and were T-58th.
Khalin Joshi (72-76) and Himmat Rai (69-79) missed the cut.
Little known Sarit Suwannarut of Thailand emerged as the surprise package after grabbing the second round clubhouse lead on Friday.
Playing in only his second Asian Tour tournament, the big-hitting 20-year-old averaged 322.5 yards en-route to a second straight five-under-par 65 as he leads the weather interrupted tournament on 10-under-par 130.
The Thailand Open was suspended at 6.45pm due to darkness after thunderstorms halted play for more than an hour in the morning. Five players will return on Saturday at 6.45 am to complete round two.
Sarit, who turned pro earlier this year, produced a flawless card highlighted by five birdies to lead by one-shot from Panuphol Pittayarat, who equalled the week's low round of 64, on his home course at the Thai Country Club.
Sarit pursued his studies at the Virginia Tech University in the United States last year before returning to Thailand to pursue his golf career. He is a regular on the local Tour and has won two out of three long drive competitions in 2018.
Sarit has only dropped one shot in 36 holes and is in prime position to win his first Asian Tour title.
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