8000816688
Investors
Close
Lost Password
  • Blog
  • Install App
  • Ask The Analyst
EquityPandit
Trending News
Maruti Suzuki Recalls 63,493 Units of Ciaz, Ertiga Variants
RBL Bank Raises Rs 2,025 Crore Through QIP
Allcargo Logistics Buys Majority Stake in Gati
  • ios
  • Home
  • Pricing
  • Payment Option
  • Latest News
  • Technical Charts
  • Technical Analysis
    • Stock Market
    • Commodity Market
  • Live Messenger
  • Tutorials
  • Media
  • Contact Us
Menu
  • Home
  • Services
    • Equity
    • Commodity
    • Currency
  • Pricing
    • Equity
    • Commodity
    • Currency
  • Payment Option
  • Latest News
  • Technical Charts
  • Technical Analysis
    • Stock Market
    • Commodity Market
  • Live Messenger
  • Tutorials
  • Media
  • Recommendation
  • Contact Us

RBI Linking New Loans to External Benchmark

August 19, 2019 at 4:38 PM EquityPandit
rbi img

Shaktikanta Das, governor Reserve Bank of India (RBI) said in his word, new loans to an external benchmark like the central bank’s repo rate will be formalised as an economic impetus is required not just from monetary policy assistance but also through the transmission of rates. However, he did not clarify if formalisation would mean that RBI will issue guidelines on this.

As per the central bank, banks must set their interest rates for new loans against an external benchmark beginning of 1st April. The new rule was supposed to apply to all new retail loans and small business loans with floating rates. Meanwhile, in April, Das postponed the move and said RBI will hold consultations with stakeholders on it.

Currently, banks price their loans against their marginal cost of fund-based lending rate(MCLR).

The way banks set interest rates is critical for the smooth transmission of policy rates. For transparent process RBI had adopted this process, to directed the banks to price their loans against their benchmark prime lending rate (BPLR), base rate, and, finally, MCLR. In last year, banks have been asked to price their loans against an external benchmark.

Read EquityPandit’s Nifty Outlook for the Week

base ratebenchmarkbenchmark prime lending rate (BPLR)Central Bankmarginal cost of fund-based lending rate(MCLR)Monetary PolicyReserve Bank of India (RBI)retail loansShaktikanta Dassmall business loansstakeholders

Post navigation

Previous PostNext Post

Register To Get 95% Accurate Tips For Free, Through SMS


I accept Terms and Condition

Recent News

equitypandit Maruti Suzuki Recalls 63,493 Units of Ciaz, Ertiga Variants

December 6, 2019 AT 4:50 PM

equitypandit RBL Bank Raises Rs 2,025 Crore Through QIP

December 6, 2019 AT 4:34 PM

equitypandit Allcargo Logistics Buys Majority Stake in Gati

December 6, 2019 AT 4:29 PM

equitypandit HTLS 2019: Banking Sector Stronger Than Before, Says PM

December 6, 2019 AT 2:09 PM

I accept Terms and Condition



Download Now

PREMIUM SERVICES

EQUITY

COMMODITY

CURRENCY

EquityPandit in Media


has been Featured on

2
3
Nbc-logo
7
PRESS-TRUST-OF-INDIA
4
Zee_News_2011
6
telegraph
http://www.equitypandit.com/my-account/
  • Home
  • Install App
  • Terms and Conditions
  • About Us
  • Careers
  • Services
  • Contact Us
  • Daily Advices
  • Site Map
  • Latest News
  • Technical Analysis
  • Payment Option
  • Get Account Details
  • Pay Via NEFT
  • privacy Policy

An ISO 9001:2008 Certified Company

Copyright © 2014 EquityPandit Financial Services Pvt. Ltd.
All rights reserved.

A GROUP COMPANY

SEBI Registered Investment Advisor
SEBI Registration Number : INA000006688

Investment/Trading in markets is subject to market risk.