Last Updated : Dec 12 2018 8:53AM     Screen Reader Access
News Highlights
Congress wrests Chhattisgarh and Rajasthan Assemblies from BJP; PM congratulates Congress, TRS and MNF for their victories            President Kovind extends India's support to Myanmar in taking forward peace process and economic recovery            Counting of votes begins for Panchayat elections in Assam            Prime Minister Narendra Modi to inaugurate fourth Partners’ Forum in New Delhi today            Men's Hockey World Cup: Argentina to play England, and Australia face France in the quarterfinals today           

Business News

Dec 06, 2018
6:45AM

RBI proposes new method to benchmark floating rate of loans for MSMEs

File Pic :PTI
In a bid to ensure greater transparency, Reserve Bank has proposed that floating interest rates on personal, home, auto and MSMEs loans be linked to external benchmarks like repo rate or treasury yields. In a statement issued from Mumbai yesterday, RBI said that the final guidelines to link the interest rate to external benchmarks will be issued by the end of this month. 

Currently, banks follow system of internal benchmarks, including Prime Lending Rate, Benchmark Prime Lending Rate, Base rate and Marginal Cost of Funds based Lending Rate. The new system is likely to become operational by 1st April 2019. 


RBI has said that the banks should decide the benchmark rate system to be followed right at the inception of the loan and it should remain unchanged through the life of the loan. It added that adoption of multiple benchmarks by the same bank will not be allowed within a loan category. 

   Related News

Live Twitter Feed

Listen News

Morning News 12 (Dec) Midday News 11 (Dec) News at Nine 11 (Dec) Hourly 12 (Dec) (0605hrs)
समाचार प्रभात 12 (Dec) दोपहर समाचार 11 (Dec) समाचार संध्या 11 (Dec) प्रति घंटा समाचार 12 (Dec) (0600hrs)
Khabarnama (Mor) 11 (Dec) Khabrein(Day) 11 (Dec) Khabrein(Eve) 11 (Dec)
Aaj Savere 12 (Dec) Parikrama 11 (Dec) Lok Ruchi Samachar 9 (Dec)

Listen Programs

Market Mantra 11 (Dec) Samayki 11 (Dec) Sports Scan 11 (Dec) Spotlight/News Analysis 11 (Dec)
    Public Speak Country wide 6 (Dec) Surkhiyon Mein 6 (Dec) Charcha Ka Vishai Ha 5 (Dec) Vaad-Samvaad 4 (Dec) Money Talk 4 (Dec) Current Affairs 7 (Dec)

 

 

 

 

× All donations towards the Prime Minister's National Relief Fund(PMNRF) and the National Defence Fund(NDF) are notified for 100% deduction from taxable income under Section 80G of the Income Tax Act,1961""