IGI Logo

Below the Quote on RBI Monetary Policy announcement - Views by Mr. Shivaji Thapliyal, Head of Research and Lead Analyst, Yes Securities

“It may be noted that banks have the option of linking externally benchmarked loans to benchmarks set by the FBIL (Financial Benchmarks India Pvt Ltd) but the same have not been utilised as much as the repo rate or t-bill rate. It remains to be seen whether the aforementioned revision of regulations will lead to greater acceptance of FBIL benchmarks from banks. The RBI would likely have received complaints from borrowers with regard to resetting of interest rates for floating rate loans, especially externally benchmarked loans. These resetting of floating rates serve to rein in potential malpractices on the part of banks. In practice, however, most of the interest rate re-setting, especially on repo-rate linked loans, is already complete. Furthermore, the use of NFC through UPI lite opens up further possibilities in terms of making retail digital payments with the actual availability of internet at a given location.”

Above views are of the author and not of the website kindly read disclaimer