Removing the anomalies in the pricing of credit will be a key area of focus for the central bank in its busy season credit policy.
The Reserve Bank of India (RBI) is also likely to emphasise a single benchmark prime lending rate (PLR) for banks.
Even though banks are averse to the idea of a single PLR, the regulator intends to push for this in order to remove the price inefficiency in the credit market, where only a handful of borrowers have gained from the falling interest rates.
Triple A borrowers today get loans at sub-PLR rates, whereas other borrowers pay higher. Despite interest rates falling, many continue to borrow funds at 14-15 per cent, while a handful pay as little as 9 per cent interest.
A single benchmark PLR will, therefore, help the majority of borrowers because pricing will be transparent.
Bankers, however, are opposing this tooth and nail.
