RBI move to help banks cut rates - finmin aide

NEW DELHI (Reuters) - The Reserve Bank of India's reduction in policy rates will encourage commercial banks to lower their lending rates, Economic Affairs Secretary Ashok Chawla said on Tuesday.

"This is another reiteration of the signal from the Reserve Bank of India to banks and the credit market. There is scope for softening of interest rates," he told reporters.

The Reserve Bank cut both its policy rates by 25 basis points each at its policy review.

(For full coverage on RBI Annual Policy Review click here)