Banking services chronicle releases the
magazine every month for the candidates who are preparing for bank
examinations. One of the articles which are published in banking serviceschronicle magazine is here which saysrepo-linked interest rates in page number
13 of November 2019.
The
reserve bank of india has made it mandatory for banks to link all of their new
loan products, be it personal, housing or auto, to an external benchmark like
the policy repo rate.
Starting
that transmission of policy rate benefits under the current frame work has not
been satiosfactory, RBI on 4 sep issued circular saying that banks will have to
link their products to an external benchmark with effect from 1 oct 2019. The
circular informs that banks can also choose any benchmark market interest rate
publishe by financial bench marks india private limited or the govt’s 3- month
and 6-month treasury bill yields published by FBIL as their preferred external
benchmark.
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