Date:08/11/2005 URL: http://www.thehindubusinessline.com/2005/11/08/stories/2005110804040800.htm

Back `Review prime lending rate system'

Our Bureau

Pune, Nov. 7

Dr Rakesh Mohan said the RBI has asked the Indian Banks Association (IBA) to review the benchmark prime lending rate (BPLR) system and issue transparent guidelines for appropriate pricingof credit.

He said at present the proportion of lending below the BPLR ranged from 60 to 80 per cent and the IBA members were not fully following the issue.

He said the IBA has said it would review the current system in consultation with the member banks and issue the guidelines, which would be reverted to the RBI and appropriate steps taken.

It may be recalled that in the mid-term review of the monetary policy, Dr Y. V. Reddy, RBI Governor, had called in for the review as suggested by the bankers.