šŸ“¢ Too many exams? Donā€™t know which one suits you best? Book Your Free Expert šŸ‘‰ call Now!

    Question

    RBI mandated use of external benchmarks for pricing of

    certain loans like retail and MSME loans. I n how many months is the interest rate to be reset at least once under the external benchmarking mechanism? Ā 
    A One Correct Answer Incorrect Answer
    B Two Correct Answer Incorrect Answer
    C Three Correct Answer Incorrect Answer
    D Six Correct Answer Incorrect Answer
    E Nine Correct Answer Incorrect Answer

    Solution

    Banks are required to extend floating rate loans to Retail and MSME borrowers with reference to external benchmark lending rates only.Ā  Ā  The external benchmarks that may be considered for loans areĀ  Ā 

    • Reserve Bank of India policy Repo Rate or Ā 
    • Government of India 3-Months and 6-Months Treasury Bill yields published by FBIL orĀ  Ā 
    • a ny other benchmark market interest rate published by FBIL.Ā  Ā 
    The periodicity of reset of interest shall be atleast once in three months . Ā 

    Practice Next
    More RBI and Monetary Policy Questions

    Relevant for Exams:

    ask-question