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  Business   Companies  26 Sep 2019  Indian Bank to link retail, MSME loans to RBI's repo rate from Oct 1

Indian Bank to link retail, MSME loans to RBI's repo rate from Oct 1

PTI
Published : Sep 26, 2019, 9:08 am IST
Updated : Sep 26, 2019, 9:08 am IST

The RBI has mandated all banks to link their loans with external benchmarks, such as repo

Several banks, including State Bank of India, have already announced to link their loan products with external benchmarks from next month.
 Several banks, including State Bank of India, have already announced to link their loan products with external benchmarks from next month.

New Delhi: State-owned Indian Bank on Wednesday said it has decided to link all new floating rate retail as well as MSME loans with the Reserve Bank of India's (RBI) repo rate, effective October 1.

The RBI has mandated all banks to link their loans with external benchmarks, such as repo, aimed at faster transmission of rate cuts effected by it to consumers.

"In conformity with the RBI guidelines dated September 04, 2019, on External Benchmark Based Lending, the bank has decided to link all new floating rate loans to personal or retail segment and new floating rate loans to micro and small enterprises (MSE), to Reserve Bank of India policy Repo Rate with effect from October 1, 2019," according to a BSE fling.

Several banks, including State Bank of India, have already announced to link their loan products with external benchmarks from next month.

Tags: indian bank, retail loan, msme loan, rbi, repo rate
Location: India, Delhi, New Delhi