Bsc monthly magazineThe panel, set up to look
into why commercial banks were
not passing on the central bank's rate cuts, has said in a report that banks "deviated
in an ad hoc manner from the specified methodologies" for calculating their lending rates to avoid fully following the RBI's rate moves. bsc
publicationThe panel proposed to remove
some of the leeway that banks have enjoyed,
including allowing lenders to use
only one of three benchmarks to set their lending rates: the policy repo
rate, Treasury Bill rates or certificate of
deposit rates. bsc magazine-buys-nowThe RBI unveiled marginal cost of funds-based lending
rates MCLR)to remove much of the
discretion commercial banks have
to set lending rates. banking service chronicle buy now banking service chronicle latest banking service chronicle subscription details