Question

Regarding the External Benchmark Lending Rate (EBL

  • R framework, consider the following statements: 1. Banks are free to choose any external benchmark, including the repo rate or T-Bill yields. 2. The spread charged over the benchmark can be changed at the bank's discretion every month. 3. Banks must reset the interest rate for the borrower at least once every three months. Which of the statements above is/are correct? 
A 1 and 2 only
B 2 and 3 only
C 1 and 3 only
D 1, 2, and 3
E 3 only
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