As many as 70 banks, including 23 public sector lenders, have not passed on the benefits from RBI’s two rate cuts so far in 2015 to their consumers.

The Reserve Bank of India cut the repo rate by 25 basis points (bps) on January 15 and by a further 25 bps on March 4.

Of the 91 scheduled commercial banks in the country, 21 lowered their base rates after the RBI’s rate cuts, Minister of State for Finance Jayant Sinha said on Tuesday.

These include four public sector banks, six from the private sector and 11 foreign banks.

The reduction in base rates has been in the range of 10-50 bps so far.

This leaves as many as 70 banks that have not lowered their rates, despite the RBI easing its monetary stance twice.

“Following the reduction in policy rate, out of 91 scheduled commercial banks, 21 banks reduced their base rates in the range of 0.1-0.5 per cent so far (up to April 15),” Sinha said in written reply to a Rajya Sabha question.

There are 27 public sector banks, 20 private sector and 44 foreign banks with scheduled commercial bank licence in the country.

PSU banks hold sway over 70 per cent of the market.

A recent study by the International Monetary Fund also pointed out that banks in India resist passing on the benefits RBI’s rate cuts to consumers, although they are rather quick in responding to rate hikes by the central bank.

It takes 13 months on an average for pass-through from a change in the RBI’s policy rate to the inter-bank rate.

Thereafter, it takes over nine months for a change in deposit rates for customers and a much longer period of nearly 19 months in case of lending rates, the study found.

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