BANKS GET 6 MORE MONTHS TO ADOPT BASE RATE NORMS

The Reserve Bank of India (RBI) gave banks another six months up to June 30, 2011 to change their benchmarks and methodologies of computation of base rate. The Base Rate system replaced the BPLR system with effect from July 1, 2010. Base Rate includes all those elements of the lending rates that are common across all categories of borrowers. Banks may choose any benchmark to arrive at the Base Rate for a specific tenor that may be disclosed transparently.