Draft directions will be issued for public comments
FinTech BizNews Service
Mumbai, 5 August, 2026: The Reserve Bank proposes to rationalise the regulatory framework on interest rates for all Regulated Entities (REs) on a principle-based basis. The proposed rationalisation aims to: (i) harmonise the guidelines across REs while maintaining proportionality; (ii) address certain operational aspects of the current framework on MCLR and EBLR; and (iii) standardise certain divergent market practices concerning interest charging, including day count convention and benchmark reset dates. The measures seek to ensure uniformity, enhance transparency in loan pricing, strengthen monetary transmission & bolster consumer protection. Draft directions incorporating these proposals will be issued shortly for public comments.
