Reserve Bank Governor Raghuram Rajan on Tuesday rebuked banks for "not passing on the previous rate cuts to customers." Rajan said the RBI wanted to facilitate the transmission of rate cuts to customers. "When banks have to raise rates, they quote higher policy rates... Why don't they cut when policy rates go down," he said.

Rajan kept policy rate unchanged even as he wanted banks to pass on benefits of previous two rate cuts.

"Transmission of policy rates to lending rates has not taken place so far despite weak credit off take and front loading of two rate cuts. With little transmission, and the possibility that incoming data will provide more clarity on the balance of risks on inflation, the Reserve Bank will maintain status quo," he said in the first bi-monthly policy review for 2015-16.

Unseasonal rains and hailstorm have impacted rabi crops across North and Western India, raising fears of spike in food prices.