RTTNews - The Reserve Bank of India (RBI) Governor, D.Subbarao said that there is still scope to reduce lending rates. He commented that money transmission mechanism had weakened in India, though not collapsed entirely.

Subbarao said that though the banks have reported lower demand for credit, India's central bank compared with other has taken adequate measures to revive the economy. He also stated that Indian economy showed higher productivity levels and high level of savings during the global economic crisis.

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