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
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