https://www.taxtmi.com/news?id=19062 Pass-through from the policy repo rate to bank lending rates in India has been slow and uneven due to a bank-dominated financial system, widespread use of internal loan-pricing benchmarks (PLR/BPLR/base rate/MCLR), liability-side rigidity from fixed-rate and long-maturity deposits, discretionary spread adjustments by banks, and weak bank balance sheets. A Study Group recommends shifting new floating-rate loans to selected external benchmarks, fixing spreads except on predefined credit events, shortening reset periodicity to quarterly, and encouraging floating-rate deposits, supported by NPA resolution and bank recapitalisation to restore transmission. en-us Fri, 17 Nov 2017 18:11:47 +0530 Wed, 11 Feb 2026 15:57:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=19062 Pass-through from the policy repo rate to bank lending rates in India has been slow and uneven due to a bank-dominated financial system, widespread use of internal loan-pricing benchmarks (PLR/BPLR/base rate/MCLR), liability-side rigidity from fixed-rate and long-maturity deposits, discretionary spread adjustments by banks, and weak bank balance sheets. A Study Group recommends shifting new floating-rate loans to selected external benchmarks, fixing spreads except on predefined credit events, shortening reset periodicity to quarterly, and encouraging floating-rate deposits, supported by NPA resolution and bank recapitalisation to restore transmission. News - Fri, 17 Nov 2017 18:11:47 +0530 https://www.taxtmi.com/news?id=19062