New Enroll here to Join NaBFID Analyst Into Class on May 6

    Question

    As per RBI guidelines, a bank should price retail loans,

    especially housing loans based on which of the following?
    A Base Rate Correct Answer Incorrect Answer
    B Benchmark Prime Lending rate Correct Answer Incorrect Answer
    C Marginal cost Lending Rate Correct Answer Incorrect Answer
    D External Benchmark Rate Correct Answer Incorrect Answer
    E Any of the above Correct Answer Incorrect Answer

    Solution

    In September  2019, in  a  bid  to  deliver  effective transmission  of  monetary  policy,  RBI decided  to  link certain  loans to external  benchmarks, which included all  new  floating  rate  personal  or  retail  loans  (housing,  auto loans, etc.) and loans to MSMEs

    Practice Next

    Relevant for Exams: