Consider the following.begin{enumerate}item Deposit ratesitem Base Rateitem Prime Lending Rateend{enumerate} Which of the above are decided by the Reserve Bank of India?

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Consider the following.

A	Only 1
B	Only 2
C	Only 3
D	Both 2 and 3

Explanation:

Detailed explanation-1: -Base rate is the minimum rate set by the Reserve Bank of India below which banks are not allowed to lend to its customers. Base rate is decided to enhance transparency in the credit market and ensure that banks pass on the lower cost of fund to their customers. It is also known as prior probabilities.

Detailed explanation-2: -RBI implemented MCLR on 1 April 2016 to determine rates of interests for loans. It is an internal reference rate for banks to determine the interest they can levy on loans.

Detailed explanation-3: -Reserve Bank of India-Lending Rates.

Detailed explanation-4: -The rate at which the RBI lends money to commercial banks is called Repo rate.

There is 1 question to complete.