RBI proposes common interest-rate reset norms for banks and NBFCs
The RBI has proposed harmonised interest-rate rules for banks and NBFCs, including quarterly resets for external benchmark-linked loans and a one-year cap for internal benchmark-linked rates. The move could improve pricing transparency for retail and MSME borrowers.
RBI plans to harmonise bank and NBFC interest-rate rules, potentially requiring standardised benchmarks and reset schedules for retail and MSME floating loans. The proposal aims to improve pricing transparency, consumer protection and monetary-policy transmission.
Why this matters
The proposal extends RBI's recent focus on consumer-facing finance, following its September liquidity outlook on consumer rates, UPI funding comments, and a Supreme Court-directed digital-fraud recovery SOP effort.
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