Saturday, February 04, 2017

Review of Guidelines on “Pricing of Credit”_RBI

Since average base rate of banks is published by RBI on quarterly basis, it has been decided to modify the above mentioned instructions as under:
“NBFC-MFIs shall ensure that the average interest rate on loans sanctioned during a quarter does not exceed the average borrowing cost during the preceding quarter plus the margin, within the prescribed cap.”


The “Master Direction -Non-Banking Financial Company-Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016” and “Master Direction - Non-Banking Financial Company-Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016” dated September 01, 2016 are being updated to reflect the changes.
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