Linking lending rates to external benchmark the most effective transmission tool so far: RBI paper

“Transmission during the MCLR regime was far from satisfactory,” said RBI’s research paper, necessitating the introduction of external benchmark-based pricing of loans for the personal loans and micro & small enterprises, effective October 1, 2019, and for medium enterprises from April 1, 2020.

from Banking/Finance-Industry-Economic Times https://ift.tt/f0hviyD