Micro-lending norms to be eased in phases

One problem that has still persisted even after the introduction of the base rate system relates to the lack of transparency in the customer- specific spread charged to a borrower over the base rate. There have been complaints that the spread charged to a customer has been revised upwards without any apparent change in risk profile, said the RBI Governor. Also, where floating rate loans are concerned,
existing customers have been disadvantaged vis-à-vis new customers with similar credit ratings,
resulting in complaints about discrimination. To address this, the Reserve Bank of India (RBI)
has constituted a working group under the chairmanship of Deputy Governor, Mr Anand
Sinha, to determine the principles that must govern proper, transparent and non-discriminatory
pricing of credit. The working group is expected to submit its report by August 2012.