RBI to standardize rules on loan rates to improve transparency, consumer protection
The Reserve Bank of India (RBI) proposed standardizing loan rate regulations to enhance transparency and consumer protection across all regulated entities. This initiative aims to harmonize guidelines on interest rates while addressing operational aspects of the Marginal Cost of Funds-based Lending Rate (MCLR) and external benchmark-linked lending rate (EBLR). Draft directions will be issued shortly, following the RBI's decision to maintain the key policy repo rate at 5.25%.