Q.3) Which of the following statementsare true regarding the Marginal Cost ofFunds based Lending Rate (MCLR): 1. Banks will do lending at or aboveMCLR. 2. MCLR may increase because ofincrease in CRR/SLR. 3. MCLR helps in better transmissionof policy rate into lending rate. Which of the...
The Reserve Bank of India (RBI) will link the base rate for loans with the marginal cost of funds-based lending rate (MCLR) from 1 April.RBI had introduced MCLR system with effect from April 1, 2016 to facilitate greater passing on of the benefit of reduction in policy rates to lending...