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.
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.
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