RBI announces new base rate formula

Q.  RBI announced new _________ moving towards marginal cost of funds methodology for interest rate on advances.
- Published on 18 Dec 15

a. Base Rate Index
b. Base Rate Formula
c. Base Rate Percentage
d. Base Rate Ratio

ANSWER: Base Rate Formula
 
On 17th December 2015, RBI announced a new base rate formula moving towards marginal cost of funds methodology for interest rate on advances. The final norms on marginal costs for banks will take effect from April 1, 2016. All loans and credit limits for April 1 will be priced in the context of MCLR or Marginal Cost of Funds based Lending Rate.

Related Content

➨ Post your comment / Share knowledge


Enter the code shown above:

(Note: If you cannot read the numbers in the above image, reload the page to generate a new one.)
▲