Mumbai, Aug. 27: The Reserve Bank of India (RBI) today gave an indication of various actions that it could take in this financial year.

Apart from encouraging banks to gradually move towards marginal cost of funds in determining their base rates, the central bank said it would look to implement certain major recommendations of the PJ Nayak committee.

In this calendar year, the central bank has brought down the policy repo rate by 75 basis points to 7.25 per cent.

However, commercial banks have only reduced their benchmark lending rates by 30 basis points. Lenders say they are unable to immediately cut their lending rates after a policy rate reduction as their overall cost of funds take time to adjust.

This is because older deposits continue to get higher rates vis-à-vis the new ones.

The RBI, in its first bi-monthly monetary policy this year, had called for banks to move towards the marginal or incremental cost of funds in determining their base rate. Banks now calculate their base rate using the average cost of funds.

The central bank today reiterated that it will look at this change to enable better transmission of any rate cuts.

Efficacy of the monetary policy transmission mechanism needs to improve since the pass-through of recent cuts in policy rate to the bank lending rate has been partial.

"Identifying the impediments in passthrough and implementing an alternative method such as marginal cost based credit pricing or identifying an appropriate benchmark for the bank lending rate will be a priority for the Reserve Bank," it added.

While the Union government has accepted most of the recommendations of the PJ Nayak committee report, the annual report said that implementation of certain major suggestions of the panel regarding governance reforms in public sector banks, including remuneration and boards formation, will be on the agenda in 2015-16.

Some of the other actions which the RBI is planning to take this year include putting in place the mechanism for issue of priority lending certificates which can be issued by banks overshooting their priority sector targets to those who are unable to achieve them.

Additionally, the RBI said it will put in place a structured process for fixing limits for FPI investment in debt securities along with a framework for periodic reviews.