HDFC has cut Retail Prime Lending Rate (RPLR) by 20 basis points (bps) to 9.9%.

The reduction in the RPLR will also be applicable on loans to Non-Resident Indians (NRIs), the company said in a statement.

The HDFC Bank is the first finance company to who has cut its lending rates.

In a media conference, Rajan said that banks are sitting on money and that the marginal cost of funding has fallen. “The notion that it has not fallen is nonsense.”

Soon after banks cut their rates in the range of 15-25 basis points.