RBI Proposes New Interest Rate Rules for Regulated Entities, Seeks Public Comments

RBI Issues Draft Guidelines to Harmonise Interest Rates on Loans for Banks

Get latest articles and stories on Business at LatestLY. RBI issued draft rules on harmonised interest rate directions for all regulated entities to ensure effective monetary policy transmission, appropriate pricing of credit risk, and fair treatment of borrowers. The central bank published the draft guidelines on Wednesday, titled "Reserve Bank of India (Interest Rates on Loans and Advances) Directions, 2026," following its developmental and re…

RBI proposes tighter loan pricing rules: External benchmark norms, APR caps and key changes explained for borrowers

The RBI has proposed a common framework for loan pricing, including benchmark-linked rates, board-approved pricing policies and tighter rules on loan spreads. The draft also proposes APR caps for small-value and microfinance loans.

RBI proposes new loan interest-rate framework, tighter rules for floating-rate loans

Under the proposed rules, lenders can offer loans at fixed or floating rates

RBI proposes new interest rate rules for regulated entities, seeks public comments

The Reserve Bank of India is harmonizing interest rate determination methods for regulated entities. New guidelines will define internal benchmarks and loan pricing components for banks. Floating rate loans will have benchmark resets not exceeding three months. Existing loans must migrate to the new framework by April 2029. These draft guidelines are open for public comment until September 11.

RBI unveils harmonised draft Directions on interest rates on loans for all lenders

RBI introduces draft guidelines for harmonizing interest rates on loans, effective April 2027, impacting all major lenders.