RBI proposes tighter loan pricing rules: External benchmark norms, APR caps and key changes explained for borrowers
The Reserve Bank of India (RBI) proposed a new framework for loan pricing to enhance transparency and consistency among lenders. This draft includes board-approved pricing policies and mandatory benchmark-linked rates for commercial banks, while allowing non-banking financial companies (NBFCs) some discretion. Public comments are invited until September 11, 2026, with the rules expected to take effect on April 1, 2027.