INDIA RESERVE BANK CREATES 6-MEMBER WORKING GRP TO REVIEW BPLR

The Reserve Bank of India (RBI) on Monday constituted a six-member working group to review the benchmark prime lending rate (BPLR) system and suggest a mechanism for pricing floating rate loans, a move that will improve transparency in the way banks set interest rates on housing loans.

The working group, chaired by RBI executive director Deepak Mohanty, comprises J P Morgan India chief economist Jahangir Aziz and Indian Institute of Management Ahmedabad professor T T Rammohan as members.

Besides those, other members include RBI chief general manager P Vijaya Bhaskar, Janak Raj, advisor-in-charge in the monetary policy department of the central bank, and RBI monetary policy department director Himanshu Joshi, who is member-secretary.

"The working Group may co-opt any other members as special invitees and may consult all stakeholders," the RBI said in a release.

The working group is expected to submit its report by the end of August. It will suggest a suitable benchmark for floating rate loans in the retail segment.

Moreover, it will also recommend a loan pricing system based on international best practices, it said, adding the review is being done to make credit pricing more transparent.

(PTI)

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