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RBI panel pushes new rules so lenders pass on rate cuts more quickly

Currently, banks can use multiple market rates and each one is free to set its own benchmark

Reuters  |  Mumbai 

A panel created by the Reserve Bank of India (RBI) said lenders are not sticking to rules that determine how much they can charge for loans, and proposed new requirements that could force banks to pass on interest rate moves to customers more quickly. The panel, set up to look into why commercial banks were not passing on the central bank's rate cuts, said in a report that banks "deviated in an ad hoc manner from the specified methodologies" for calculating their lending rates to avoid fully following the RBI's rate moves. The RBI has cut its policy rate by a ...

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First Published: Thu, October 05 2017. 16:03 IST