Chairman of the country's largest lender, State Bank of India (SBI), Pratip Chaudhari has said that the country's central bank should cut cash reserve ratio (CRR) and repo rate by 50 basis points.
"At present, the CRR is 4 per cent. It should be reduced to 3.5 per cent and the repo rate, which is at 7.75 per cent, should be reduced to 7.25 per cent. This would result in lowering of interest rates on all loans, which would boost the economy," Chaudhuri said.
The Reserve Bank of India is scheduled to announce its monetary policy review on March 19, Tuesday and is widely expected to lower interest rates to propel growth.