RBI PUTS OFF ROLLOUT OF BASE RATE TO JULY 1

Giving in to a request from bankers, the Reserve Bank of India agreed to extend the deadline for implementing the base rate regime from April to July 1. The base rate will replace the current benchmark prime lending rate (BPLR). BPLR will continue along with the base rate until the transition is complete. The base rate will be applicable to new borrowers, and existing customers will continue to be governed by BPLR beyond July until their loan is due to renewal and Central Bank is expected to issue norms soon relating to classification of export loans. RBI has agreed to excludes staff loans, loans against fixed deposits and differential interest rate from the purview of base rate.
However,the central bank has not agreed to exclude the purview of the base rate regime from discounted festival and agricultural loans.