Before the Monetary policy Review to be held in April, the banks have requested the Apex bank to have meeting and cut down the interest rates in order to revive investment flow. In the meeting the bank will be requesting to cut short the rate and will be putting forward their situation. It has been reported that banks are facing lack of demand in loans as well as accelerated deterioration of bad loans. In order to curb with their problem they want RBI to help them out.
They believe that the lowering of rates will help in sustaining the economic fortunes of the corporate world.The governor of RBI Mr. Rajan has raised the rates thrice since the September last year, still lenders are expecting lower interest rates. The RBI will be meeting on 1st April for monetary policy review.