Banks Asked To Link Floating Rate Loans With Benchmark Rates From October 1: 5 Points

The Reserve Bank of India on Wednesday asked banks to link certain loans to external benchmark rates from October 1. The move is set to enable a faster transmission of its key interest rates to borrowers. "It has been observed that due to various reasons, the transmission of policy rate changes to the lending rate of banks under the current MCLR framework has not been satisfactory," the central bank said in a statement. "The RBI ther...