 "RBI Governor Shaktikanta Das (third from left) with (from left) Deputy Governors Mahesh Kumar Jain, N S Vishwanathan, B P Kanungo, Viral Acharya, and Executive Director M D Patra (at the back)")
The Reserve Bank of India delayed the proposed linking of floating rates to external benchmarks on Thursday. The central bank has been pushing banks to link lending rates to external benchmarks as the latter were not adequately passing on rate cut benefits to borrowers.
“Taking into account the feedback received during discussions with stakeholders it has been decided to hold further consultations and work out an effective mechanism for transmission of rates,” the RBI said on Thursday, after the first bi-monthly monetary policy committee meeting of this financial year.
In December, the RBI had proposed that all floating rate personal, retail loans,
