29 monetary policy announcement and also compliment it with an equal cut in cash reserve ratio to boost liquidity.
Banks will be in a position to cut deposit rates only if the two conditions are met, which will gradually translate into a cut in lending rates, he maintained.
Overnight borrowings by banks have to come down to up to Rs 50,000 crore from the current range of around Rs 1,00,000 crore for the banks to be comfortable and act on rates, he said.
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