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    Question

    According to RBI’s circular on External Benchmark

    Based Lending, which of the following is not listed as an eligible external benchmark?
    A RBI policy repo rate Correct Answer Incorrect Answer
    B Government of India 3-Months Treasury Bill yield Correct Answer Incorrect Answer
    C Government of India 1-Year Fixed Deposit rate Correct Answer Incorrect Answer
    D Any other benchmark market interest rate published by FBIL Correct Answer Incorrect Answer
    E Government of India 6-Months Treasury Bill yield Correct Answer Incorrect Answer

    Solution

    As per RBI’s framework on External Benchmark Based Lending (EBLR), banks are required to link all new floating rate loans (retail and MSME) to an external benchmark. The eligible benchmarks include: • RBI policy repo rate • Government of India 3-Months Treasury Bill yield (published by FBIL) • Government of India 6-Months Treasury Bill yield (published by FBIL) • Any other benchmark market interest rate published by FBIL

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