Bombay HC: Insolvency Cannot be Used to Evade a Family Court’s Maintenance Order || Kerala HC: Forklifts and Factory Cranes Are Motor Vehicles and Must be Registered under MV Act || Guj HC: Edible Crude Palm Kernel Oil Qualifies for Duty Exemption; End-Use Condition not Applicable || NCLAT Delhi: Advance under Land-Development MoU is not Financial Debt and Cannot Trigger CIRP || NCLAT: NCLT Cannot Change Capital Structure of a Legally Compliant Successful Auction Purchaser || Supreme Court: Endless Investigation and Long Delay in Filing Chargesheet Can Justify Quashing Case || SC: Landowners Accepting Compensation Settlements Cannot Later Claim Statutory Benefits || Supreme Court: Provident Fund Dues Have Priority over a Bank’s Claim under the SARFAESI Act || Supreme Court: Indian Courts Cannot Appoint Arbitrators for Arbitrations Seated Outside India || Madras HC: Police Superintendent not Liable For IO’s Delay In Filing Chargesheet or Closure Report

RBI clarifies its Directions on MCLR System- (Reserve Bank of India) (29 Mar 2016)

MANU/RPRL/0093/2016

Banking

The Reserve Bank of India clarified its 2016 Directions relating to the Marginal Cost of Funds based on Lending Rate system, effective 1 April 2016. The notification includes a helpful illustration to demonstrate the intended functioning of the regime for determining MCLR. The RBI reiterates that fixed rate loans are exempt from being linked to MCLR, with such loans of tenor above three years also benefitting from exemption. Also, MCLR computation will take into consideration balances, deposits and other borrowings outstanding on the day previous to calculation.

Relevant : Guidelines for interest rates on advances MANU/RMIC/0398/2015

Tags : MCLR MARGINAL COST FIXED RATE

Share :