NO MULTIPLE BPLRs

The Reserve Bank of India (RBI) is not in favour of a multiple Benchmark Prime Lending Rate (BPLR) mechanism as proposed by bankers. BPLR is the rate at which banks should lend to the more creditworthy customers, and factors in the cost of funds, factors in the risk, the operational cost and a margin.However, corporate loans with a tenure of less than a year and housing loans could be kept outside the purview of the new reference rate mechanism.