Question
Which of the following is not a component of M arginal
Cost of Funds based lending rate (M CLR ), used by the banks to price the loans they extend ? ÂSolution
All floating rate rupee loans sanctioned and renewed w.e.f. April 1, 2016 shall be priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which will be the internal benchmark for such purposes subject to the provisions contained in paragraph 7 of this Master Direction. Â The MCLR shall comprise of: Â a. Marginal cost of funds; Â b. Negative carry-on account of CRR; Â c. Operating costs; Â d. Tenor premium. Â
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