Are the rate cuts really low?

With the FY 10, monetary policy being already announced by RBI governor D.Subbarao a few days ago all eyes are now on financial service players as to how they respond to the signals clearly given by Guv.

RBI has never been so quick to react to the situation and be proactive...but in past 7-8 months it has reacted in symphony with the situations and has reduced the key interest ratios by substantial margins viz. CRR,RR,RRR. As a consequence the onus now is on bankers to take the cues and reduce interest rates as also deposit rates and this is precisely what Mr. Subbarao clearly hinted at during the recent Monetary Police announcement.

Though the absolute interest rates have been reduced by the bankers in range of 75 bps to 2 bps by few players(notably the PSU majors like SBI,PNB). But most of private sectors have been reluctant to prune down the rates.
But if one goes by Actual interest rate figures (Interest rates - Inflation) then the interest rates are still on higher side.The bankers argue by saying that the cost of money is still high and they have to maintain their NIM's(Net interest Margins).Another argument is that those people who have taken Fixed deposits will continue earning same interest rates till expiry but the loan takers will have to pay less everytime the interest rates and PLR's are reduced by banks.So while they have to keep paying same interest rates to the lenders they will be able to earn less interest from borrowers.

Also seeing the environment and what has happened in past year or so has made bankers cautious in extending the credit to people.Though India has been relatively insulated from the lending crisis but still if NPA's rise then again the bankers would be taken by sticks as no body knows who might go bust the next day. Even biggest of corporates have openly admitted of the tight credit situation.

Though the situation is expected to improve with all the rate cuts playing their way through the economy in coming days.
What do you think?? Are we moving towards ZIRP regime???