The base rate is the benchmark to which all loan rates are linked.
RBS is the first foreign bank to reduce the benchmark rate after the RBI move earlier in the day.
Mr Brijesh Mehra, MD and country head of international banking at RBS, said, "Today's move by the RBI to cut repo and CRR by 25 bps is in sync with our expectations. In line with the potential deflationary environment, RBS has decided to cut its base lending rate."
Meanwhile, IDBI Bank announced that it has lowered its lending rate by 0.25 per cent to 10.25 per cent barely hours after the RBI reduced the repo rate and CRR.