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From April 1, 2018, Reserve Bank of India (RBI) will link the ___________, for the loans given by banks to the Marginal Cost of Funds based Lending Rates (MCLR)?
  • a)
    Repo Rate
  • b)
    Base Rate
  • c)
    Call Rate
  • d)
    Marginal Standing Facility
  • e)
    Bank Rate
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
From April 1, 2018, Reserve Bank of India (RBI) will link the ________...
From April 1, 2018, Reserve Bank of India (RBI) will link the base rate for loans given by banks to the Marginal Cost of Funds based Lending Rates (MCLR). MCLR system was introduced by RBI on April 1, 2016 to avoid the problems of the Base Rate regime. MCLR is the minimum interest rate of a bank, below which it cannot lend. It serves as an internal benchmark for the bank. Interest rate on corporate and retail loan products is fixed above this rate. As compared to base rate, MCLR is more sensitive to changes in key policy rates made by RBI. It increases or decreases in tandem with policy rates.Even after nearly two years since introduction of MCLR, large portion of corporate and retail loan portfolio of banks have still not migrated to MCLR regime.
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From April 1, 2018, Reserve Bank of India (RBI) will link the ___________, for the loans given by banks to the Marginal Cost of Funds based Lending Rates (MCLR)?a)Repo Rateb)Base Ratec)Call Rated)Marginal Standing Facilitye)Bank RateCorrect answer is option 'B'. Can you explain this answer?
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From April 1, 2018, Reserve Bank of India (RBI) will link the ___________, for the loans given by banks to the Marginal Cost of Funds based Lending Rates (MCLR)?a)Repo Rateb)Base Ratec)Call Rated)Marginal Standing Facilitye)Bank RateCorrect answer is option 'B'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about From April 1, 2018, Reserve Bank of India (RBI) will link the ___________, for the loans given by banks to the Marginal Cost of Funds based Lending Rates (MCLR)?a)Repo Rateb)Base Ratec)Call Rated)Marginal Standing Facilitye)Bank RateCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for From April 1, 2018, Reserve Bank of India (RBI) will link the ___________, for the loans given by banks to the Marginal Cost of Funds based Lending Rates (MCLR)?a)Repo Rateb)Base Ratec)Call Rated)Marginal Standing Facilitye)Bank RateCorrect answer is option 'B'. Can you explain this answer?.
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