 "RBI")
In April 2016, the Reserve Bank of India (RBI) introduced the marginal cost of funds based lending rate (MCLR) system to improve the monetary policy transmission mechanism in India.
But this shift may not have yielded the desired results, suggests a new report by an internal study group formed by the RBI.
The report finds that both the extent as well as the pace of reduction in the MCLR have been uneven.
As shown in Chart 1, transmission has been quicker on fresh rupee loans, while on existing loans it has been partial. A large part of this transmission in
