New Delhi: Economic affairs secretary Shaktikanta Das said on Friday banks are expected to cut interest rates over the next few days in light of the recent monetary policy easing by RBI. “Banks are autonomous and the government has given a very strong signal by maintaining the fiscal deficit at 3.5 per cent and resetting small savings rates. RBI has reduced the policy rate by 25 basis points. One would expect banks to take a policy call and I am sure they would do it in days and weeks to come,” he said.
“We would expect the banks to do a more effective transmission of rates. I do expect banks to take steps in that direction,” he said. The secretary said India is moving towards a low interest rate regime as inflation is under control. “We are looking at a regime of low interest rates, thanks to inflation being under control and various measures which the government has taken,” he added.
He said that the Centre is likely to introduce a Bill for dispute resolution in PPP projects and public utility contracts in the upcoming Parliament session.
He said that Parliamentary panel is too expected to submit its report on the Bankruptcy and Insolvency Code on April 29 and the government would also push for its passage in the upcoming session.
The enactment of the public utility bill would provide a legal framework for speedier resolution of disputes in PPP projects. The new law will deal with construction contracts, PPP contracts or any other contract which involves a public utility authority and a private contractor.
