Amid persistent calls from the government and the industry to cut interest rates, RBI Governor Dr. Raghuram Rajan today said the central bank is keeping a watch on monsoon and global factors to assess their impact on inflation. Addressing the SBI Banking and Economics Conclave in Mumbai, Dr. Rajan said there has been more information on the inflation front since the last policy announcement and the RBI will take that into account accordingly. While the next announcement of monetary policy review is scheduled on 29th September, RBI had earlier said that the option for rate cut outside the scheduled review is open subject to subdued inflation and conducive global factors. Out of the three rate cuts announced in 2015, two have taken place outside the scheduled bi-monthly monetary policy review.A couple of days ago, Union Finance Minister Arun Jaitley had said that RBI should take note of the declining inflation and take a decision accordingly. Meanwhile, Dr. Rajan continued to remain critical of banks for not passing on the entire benefit of RBI's 0.75 per cent rate cut so far. Cautioning the banks against a rising competitor, Dr. Rajan said the market competition will get stronger and if the banks fail to transmit policy rates at a faster pace, this loss of business will continue. Dr. Rajan was however quick to add that he is not pessimistic about transmission of benefits in the longer run. He said that the answer in the longer run is to convert the fixed cost deposits into floating rates either through incentives or by swapping and use the interest rate derivative market much more.