1. RBI has often commented on the policy transmission mechanism being weak. 2. Therefore - when the RBI lowers or increases rates by 50 bps - the response in bank deposit and lending rates is not proportional. 3. The repo rate affects them to the extent of say 1% of NDTL which is around '80-85 - 000 crore - which is accessed through the daily LAF and term repo facilities. 4. Would this then mean the RBI has to lower the (liquidity adjustment facility) LAF facility in case it realises banks are not increasing rates when the repo rate is increased? 5. Principal among the measures to accelerate growth isthe significant outlay for infrastructure spending.