Changes in EBLR & MCLR framework, interest rate charging mechanism and how reset dates are decided- RBI proposal

RBI MPC policy: The Reserve Bank of India plans to simplify loan interest rate rules for all regulated entities. This initiative aims to harmonize guidelines and address operational aspects of current lending rate benchmarks. The proposed changes will standardize market practices concerning interest charging and benchmark reset dates. These measures intend to improve transparency and strengthen monetary policy transmission across the system.
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