The government had asked the lending institutions to complete the exercise of crediting the amount in the accounts of borrowers by November 5.
Bengaluru-based Canara Bank has cut its one-year MCLR to 7.55 per cent from 7.65 per cent earlier.
Repo Linked Lending Rate (RLLR) has been reduced by 75 basis points from 8.05 per cent to 7.30 per cent effective from Tuesday, it said in a statement.
'We encourage customers to avail of the credit lines that have been opened and assure that the Bank is available at all times to meet all the credit requirements ,' said the bank.
It was the "largest cut since 2015 and takes the 7-day reverse repo rate to its lowest on record", said Julian Evans-Pritchard, senior China economist at Capital Economics.
Shaktikanta Das summoned an out-of-turn meeting of the Monetary Policy Committee, which despite a 4-2 vote split, went for a 'whatever it takes' approach to rate cuts.
The Reserve Bank cut rates in five consecutive reviews in 2019 before pausing in December due to surge in inflation.
The domestic equity indices traded in the red during the late-afternoon trade session soon after the Reserve Bank of India increased its key lending rates, which was widely expected.
The Punjab National Bank (PNB) on Thursday increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 15 bps, with immediate effect.
State Bank of India, the country's top lender by assets, raised marginal cost-based lending rates across most maturities, effective immediately.