No concrete action has been taken towards interest rate rationalisation. Raghuram Rajan, former RBI Governor, proposed rationalisation of interest rates by removing Statutory Liquidity Ratio(SLR)/ Cash Reserve Ration (CRR) obligations of banks.
An improvement of 0.5% in average interest rate in manufacturing sector has been observed, according to FICCI March 2017 report. These rates, however, go as high as 15% in some cases, which suggests that no rationalisation of these rates has been done.
(SLR/CRR are the obligations on Banks to reserve certain proportions of their deposits either in the form of gold, cash or other approved securities.)
As the credit to the industry is still fluctuating & no rationalization has been seen, it has been given the status “Inadequate Progress”.