RBI cut benchmark lending rate yesterday to 6.5 percent, lowest in the last 5 years.

He added however that it would be unfair to say nothing has been transmitted. "There had been transmission, may be slightly less than the expectations."

RBI Governor Raghuram Rajan had said yesterday that the 0.25 percent rate cut should be looked at in conjunction with the new loan pricing method that has already resulted in lending rates coming down by up to 0.50 percent.

"Don't look at the monetary policy review as 25 bps (cut alone). Look at the composite of measures (marginal cost of funding-based lending rate methods effective April 1), they all add up. Borrowing rates are coming down significantly in the economy," Rajan had said while unveiling the first bi-monthly monetary policy of the current fiscal, which started this month.

He had further said that the slew of liquidity measures announced will lead to a better transmission of the policy into actual lending rate cuts by the banks.

To help micro, small and medium enterprises (MSMEs), Mundra said RBI will lay down a framework by September 2016 for accreditation of credit counsellors who can act as facilitators for entrepreneurs to access the formal financial system with greater ease and flexibility.

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