RBI Tweaks Upcoming New Rules For Lending Rates
March 29, 2016: The Reserve Bank of India has tweaked the rules for lending rates. RBI has given a statement on Tuesday that the fixed rate loans of up to three years will have to be set on the basis of their marginal cost of funding. If the loans are above this tenure, they can be exempted.
Previously, there were no such criteria of the marginal cost of funding. RBI will implement this new rule on April 1, 2016, that will push lenders to set the lending rates on the basis of the marginal cost of funding.