JOIN USA meeting of the BPLR committee, headed by RBI Executive Director Deepak Mohanty and comprising external experts and IBA met here on Thursday to discuss proposals in the draft report.
The committee is considering multiple BPLRs for corporates, SMEs and retail borrowers and is likely to meet by mid-September to finalise the recommendations on the BPLR structure. BPLR is the interest rate that commercial banks charge their most credit-worthy customers. Besides, the panel is also discussing options to differentiate loans below Rs 2 lakh to protect the interests of small borrowers.
“The draft report is considering multiple BPLR system. They are also discussing the possibility of excluding home loans from the BPLR,” Indian Banks Association Chief Executive K Ramakrishnan, who attended Thursday’s meeting, told PTI.
An IBA sub-group is likely to meet sometime this week to discuss about the suggestions in the draft report and will give its feedback to the RBI panel by mid-September, Ramakrishann said. The Reserve Bank constituted a special committee to revisit the existing BPLR structure to bring more transparency in the manner in which banks arrive into the BPLR.