State Bank of India (SBI), the largest state run lender, has cut its base rate by 15 basis points to 9.85% from 10%, which is effective from Apr. 10, 2015.

HDFC Bank, leading private sector lender, has also reduced the base rate by 15 basis points to 9.85% from 10% earlier.

Earlier today, the RBI in its monetary policy review said, 'Transmission of policy rates to lending rates has not taken place so far despite weak credit off take and the front loading of two rate cuts.'

The central bank told banks that the transmission of its front-loaded two rate reductions into their lending rates is critical factor for determining future policy action.

'Comfortable liquidity conditions should enable banks to transmit the recent reductions in the policy rate into their lending rates, thereby improving financing conditions for the productive sectors of the economy,' the central bank opined.