MUMBAI: The Reserve Bank on Thursday gave banks another six months till June 30 to adopt the new method for computing base rate — below which lenders are not allowed to extend loans. "Banks are permitted to change the benchmark and methodology used in the computation of Base Rate for a further period of six months, ie upto June 30, 2011," the RBI said in a notification .
Earlier, banks were given time till December 31 to adopt the new method for computing base rate. Last April, the RBI had directed all the banks to switch to the base rate system with effect from July 1, from the then prevailing Benchmark Prime Lending Rates (BPLR) system. The minimum lending rate, or base rate, is intended to bring about more transparency in banks' lending operations.
Read more: New base rate method by June 30: RBI - The Times of India http://timesofindia.indiatimes.com/business/india-business/New-base-rate-method-by-June-30-RBI/articleshow/7233667.cms#ixzz1AK2uIAdE
Earlier, banks were given time till December 31 to adopt the new method for computing base rate. Last April, the RBI had directed all the banks to switch to the base rate system with effect from July 1, from the then prevailing Benchmark Prime Lending Rates (BPLR) system. The minimum lending rate, or base rate, is intended to bring about more transparency in banks' lending operations.
Read more: New base rate method by June 30: RBI - The Times of India http://timesofindia.indiatimes.com/business/india-business/New-base-rate-method-by-June-30-RBI/articleshow/7233667.cms#ixzz1AK2uIAdE
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