The regulator's grip
Rate transmission: how RBI's repo rate reaches your customer's EMI
How an RBI rate cut reaches a customer's EMI — fast on EBLR loans, slow on MCLR.
Why it matters
A worked example
On a 0.25% repo cut, an EBLR borrower's rate drops within ~3 months; an MCLR borrower's barely moves for 6–12.
The picture
What it leads to
When loan rates fall faster than deposit costs, the bank's NIM gets squeezed — a rate cut can hurt margins in the short run.
Where it sits in the map
Follow the causation