Mandatory to link loans for housing autos MSEs to external benchmark: RBI to banks

The Economic Times
Published on: Sep 5, 2019
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With a view to allow faster transmission of rate cuts to consumers, the Reserve Bank of India on Wednesday said the banks must mandatorily link retail and SME loans to an external benchmark from October 1. The central bank observed that due to various reasons, the transmission of policy rate changes to the lending rate of banks under the MCLR framework was not satisfactory.

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