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Sunset clause for the BPLR Requested

The bankers asked the Reserve Bank of India (RBI) to introduce a sunset clause for the old benchmark prime lending rate (BPLR) in the context of the enforcement of the Base rate from 1 July 2010. The bankers made the demand so that one lending system which is the base rate exists in the system.

Oct 13, 2010 15:10 IST
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The bankers asked the Reserve Bank of India (RBI) to introduce a sunset clause for the old benchmark prime lending rate (BPLR) in the context of the enforcement of the Base rate from 1 July 2010. The bankers made the demand so that one lending system which is the base rate exists in the system. The banks cannot force their customers to shift to the base rate regime. As a result they are being compelled to announce two lending rates — the base rate and the BPLR. The RBI guidelines in this respect would enable the banks to announce only the base rate on a quarterly basis.