Mumbai, March 05: Acceding to the demand of bankers, the Reserve Bank today deferred implementation of the base rate regime by three months to July 1 and also exempted three categories of loans from the new system.
“Yes, we have allowed that…it (base rate) will start from July 1…all concerns of banks (regarding the implementation of the base rate model) have been addressed,” RBI Deputy Governor Usha Thorat told reporters here after a meeting with the leading bankers.
The apex bank, in a circular last month, had asked banks to adopt the base rate model from April 1. RBI decided to replace the current benchmark prime lending rate system with the base rate to increase transparency in lending as many banks are lending at much lower rates than their benchmark lending rates to new customers.
–Agencies