Technoglitch
Core Member
Under the new rules, banks must set their lending rates under the so-called marginal cost of funding every month, which is based on the cost of new deposits.
Under the current system banks set their lending rates based on the average rate of outstanding deposits, a system that had given them more freedom to determine how much to change. RBI said the rules, which closely track draft guidelines issued in September, will come into effect starting 1 April 2016.
RBI announces new rules for calculating base rate - Livemint
Under the current system banks set their lending rates based on the average rate of outstanding deposits, a system that had given them more freedom to determine how much to change. RBI said the rules, which closely track draft guidelines issued in September, will come into effect starting 1 April 2016.
RBI announces new rules for calculating base rate - Livemint
