Governor Rajan's smart move.

On Tuesday, RBI governor Raghuram Rajan made a smart move by letting banks know that they have to pass down the benefits of rate cut to the consumers. Countering, banks claim that previous rate cuts have not benefited them, Rajan said "Banks marginal cost of funding has fallen, the notion that it hasn't fallen is nonsense" 

Indirectly, he was making it clear that banks have to cut base rates, before he cuts rate further. The big banks SBI, ICICI and HDFC has already decided to cut base rates.