Question

In the context of the RBI’s monetary policy, the External Benchmark Lending Rate (EBL

  • R framework was introduced to improve the transmission of policy rates. Which of the following is true regarding the EBLR? 
A Banks are free to reset the EBLR once every year to ensure profit stability.
B It allows banks to use their own internal cost of funds to set interest rates for retail loans.
C Banks must link the interest rates on specified floating-rate retail and MSME loans to an external benchmark, such as the Repo Rate.
D The EBLR framework applies only to Public Sector Banks, while private banks continue to use the MCLR.
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