Here's a quick decoding of the RBI monetary policy review in December

The RBI has mandated a minimum level of 'loan component' in fund-based working capital finance for larger borrowers and issued final guidelines

Retail, MSME loans to be linked to an external benchmark

All new floating-rate personal, retail or micro, small and medium enterprise (MSME) loans from banks will be linked to one of the three external benchmarks prescribed by the RBI from April 2019.  The banking industry is wary of this. They feel it might lead to cut in margins.
 

The RBI believes a shift from the current marginal cost of funds-based lending rate to external benchmarks will bring greater transparency and standardisation to loan products  

SLR to be 18%, with quarterly cuts of 25 basis points (bps)

Banks are required to