4 Dec 2013 RBI has the responsibility of controlling the money supply, Inflation rate. They try to achieve this by using the open market operations (OMC).

Under the scheme, banks may extend subsidized loans to entrepreneurs at interest rates not exceeding five percent, where refinance of two percent from Government of India is available. Such lending at interest rates not exceeding five percent per annum where refinance of Government of India is available, External Benchmark/MCLR/Base Rate/Benchmark Prime Lending Rate External Benchmark for Lending Facilities. All (Floating rate loan to Individual & Micro and Small Entities) rupee loans sanctioned and credit limits renewed with effect from 1st October 2019 shall be priced with reference to the below rates for the respective benchmark as mentioned in sanction letter. With effect from October 10, 2019, State Bank of India revised its lending rates, reducing them by 10 basis points. Revised MCLR for overnight and one month is 7.70%, for three months, it is 7.75%, and for six months it is 7.90%. Know About Base Rate. How to calculate base rates in India. Difference between Base Rates and Bank Prime Lending Rates. BPLR differ from BR. New base rates: SBI – 8.65%, ICICI Bank – 8.85%, Axis Bank – 8.95%, Kotak Bank – 9.10%, PNB – 9.15%, Union Bank – 8.95%, OBC – 9.45%, IDBI Bank – 9.50%, Yes Bank – 10.25%. Bank of India’s new base rate is 9.45% and revised base rate of Andhra Bank is 9.55% RBI Repo rate or key short term lending rate When reference is made to the Indian interest rate this often refers to the repo rate, also called the key short term lending rate. If banks are short of funds they can borrow rupees from the Reserve Bank of India (RBI) at the repo rate, the interest rate with a 1 day maturity. Base rate is the minimum lending rate prescribed by each commercial bank. The bank fixes such minimum rate after considering all risk prospects and they cannot lend below this rate in order to attract borrowers. The rate has to be informed to RBI and the public through proper forum - say websites, news papers etc.,

Who Calculates The Base Rate In India? The RBI (Reserve Bank of India) calculates the base rate in India. The RBI sets this to bring uniform rates to all banks in India. A base rate comprises of all the elements of lending rates, which are common among the borrowers of various categories. Note: Lending rate is the rate of interest that a bank lends to its customers. A lending rate includes the operating cost of a product, tenor premium, credit risk premium, and the borrower-specific cost.

Definition of 'Base Rate' Definition: Base rate is the minimum rate set by the Reserve Bank of India below which banks are not allowed to lend to its customers. Description: Base rate is decided in order to enhance transparency in the credit market and ensure that banks pass on the lower cost of fund to their customers. Marginal Cost of Funds Based Lending Rate (MCLR) for the month September 2019: 260 kb: Sep 09, 2019: Marginal Cost of Funds Based Lending Rate (MCLR) for the month August 2019: 208 kb: Aug 06, 2019: Marginal Cost of Funds Based Lending Rate (MCLR) for the month July 2019: 225 kb: Jul 17, 2019: Marginal Cost of Funds Based Lending Rate (MCLR Base Rate: The Reserve Bank of India sets a minimum rate below which banks in India are not allowed to lend to their customers. This minimum rate is called the Base Rate in banking terms. It is the minimum rate of interest the banks are permitted to charge their customers. The new Base Rate as fixed by RBI is in the range of 8.95% - 9.40% p.a. RBI Repo rate or key short term lending rate When reference is made to the Indian interest rate this often refers to the repo rate, also called the key short term lending rate. If banks are short of funds they can borrow rupees from the Reserve Bank of India (RBI) at the repo rate, the interest rate with a 1 day maturity. The interest rate on home loans has two main components—base rate and spread. Base rate is the rate below which the bank cannot lend, and spread is the margin based on customer - and product-specific factors. In the case of SBI, for instance, while the existing borrowers will pay 10.5% interest, of which 10% is the base rate and 0.5% is the spread, new borrowers will end up paying only 0.25%

Know About Base Rate. How to calculate base rates in India. Difference between Base Rates and Bank Prime Lending Rates. BPLR differ from BR. New base rates: SBI – 8.65%, ICICI Bank – 8.85%, Axis Bank – 8.95%, Kotak Bank – 9.10%, PNB – 9.15%, Union Bank – 8.95%, OBC – 9.45%, IDBI Bank – 9.50%, Yes Bank – 10.25%. Bank of India’s new base rate is 9.45% and revised base rate of Andhra Bank is 9.55%

1 Sep 2015 Minimum lending rate must be based on marginal cost of funds, say draft guidelines. 24 Jan 2016 Commercial banks cannot lend below the base rate, though they may if the Reserve Bank of India (RBI) permits it. The right to decide the base  Bank Lending Rate in India remained unchanged at 9.40 percent in February from 9.40 percent in January of 2020. Bank Lending Rate in India averaged 13.47 percent from 1978 until 2020, reaching an all time high of 20 percent in October of 1991 and a record low of 8 percent in July of 2010. Current MCLR, Base Rate, PLR Trend of All Banks in India Oct 2019. 4th October 2019 – RBI cuts repo rate by 25 bps to 5.15%. Repo Rate has been cut by 25 bps by RBI from 5.40% to 5.15% in its 4th bi-monthly monetary policy on 4th October 2019. Repo Rate has been cut 5th time in a row and is at the lowest in the last 9 years.

24 Jan 2016 Commercial banks cannot lend below the base rate, though they may if the Reserve Bank of India (RBI) permits it. The right to decide the base 

1 Sep 2015 Minimum lending rate must be based on marginal cost of funds, say draft guidelines. 24 Jan 2016 Commercial banks cannot lend below the base rate, though they may if the Reserve Bank of India (RBI) permits it. The right to decide the base  Bank Lending Rate in India remained unchanged at 9.40 percent in February from 9.40 percent in January of 2020. Bank Lending Rate in India averaged 13.47 percent from 1978 until 2020, reaching an all time high of 20 percent in October of 1991 and a record low of 8 percent in July of 2010. Current MCLR, Base Rate, PLR Trend of All Banks in India Oct 2019. 4th October 2019 – RBI cuts repo rate by 25 bps to 5.15%. Repo Rate has been cut by 25 bps by RBI from 5.40% to 5.15% in its 4th bi-monthly monetary policy on 4th October 2019. Repo Rate has been cut 5th time in a row and is at the lowest in the last 9 years. Since the Base Rate is the minimum rate for all loans, banks are not permitted to resort to any lending below the Base Rate. Banks are required to review the Base Rate at least once in a quarter. With the introduction of the Base Rate system, the Reserve Bank rationalised the reporting format for scheduled commercial banks (SCBs) and introduced a new reporting format. Accordingly, data on lending rates of SCBs have undergone some changes for the quarter ended September 2010 onwards.

It was introduced in the Indian banking system on 1 July after a directive by the The base rate was designed to replace the flawed benchmark prime lending 

Please note that Reserve Bank of India had mandated the requirement of Legal Identity Base Rate: Please note that Base Rate for All categories of Loans and Marginal Cost of Funds based Lending Rate (MCLR) Rates effective from 1st  5 Sep 2019 The Reserve Bank of India has made it mandatory for all banks to link all Base Rate: Banks stopped lending on base rate from April 2016. Lending Rate. Marginal Cost of Fund based Lending Rates (MCLR) with effect from 1st March, 2020: Tenor  11 Oct 2011 The base rate, introduced with effect from 1st July 2011 by the Reserve Bank of India, is the new benchmark rate for lending operations of  1 Oct 2019 YES BANK - Marginal Cost of Funds based Lending Rate (MCLR). As per RBI guidelines, all floating rate rupee loans sanctioned and credit limits renewed w.e.f. YES BANK's Base Rate effective 5th October 2015 is 10.25%.

India’s Base Rate: Five Major Banks: High data is updated yearly, averaging 9.700 % pa from Mar 2011 to 2019, with 9 observations. The data reached an all-time high of 10.750 % pa in 2012 and a record low of 9.400 % pa in 2019. India’s Base Rate: Five Major Banks: High data remains active status in CEIC Who Calculates The Base Rate In India? The RBI (Reserve Bank of India) calculates the base rate in India. The RBI sets this to bring uniform rates to all banks in India. A base rate comprises of all the elements of lending rates, which are common among the borrowers of various categories. Note: Lending rate is the rate of interest that a bank lends to its customers. A lending rate includes the operating cost of a product, tenor premium, credit risk premium, and the borrower-specific cost. Long Term Interest Rate is reported by reported by Reserve Bank of India. In the latest reports, India's Short Term Interest Rate: Month End: India: MIBOR: 3 Months was reported at 6.18 % pa in Sep 2019. The cash rate (Policy Rate: Month End: Repo Rate) was set at 5.40 % pa in Sep 2019. Under the scheme, banks may extend subsidized loans to entrepreneurs at interest rates not exceeding five percent, where refinance of two percent from Government of India is available. Such lending at interest rates not exceeding five percent per annum where refinance of Government of India is available, External Benchmark/MCLR/Base Rate/Benchmark Prime Lending Rate External Benchmark for Lending Facilities. All (Floating rate loan to Individual & Micro and Small Entities) rupee loans sanctioned and credit limits renewed with effect from 1st October 2019 shall be priced with reference to the below rates for the respective benchmark as mentioned in sanction letter.