The Reserve Bank proposal to move to marginal cost-based pricing could be an interim measure to prepare banks to ultimately move to market related benchmarks to price their deposits and loans. "It is expected that the above steps would also be helpful in the medium term goal of banks pricing their floating rate loans linked to an external benchmark," said the draft guidelines. "Once Financial Benchmarks India Pvt Ltd (FBIL) starts publishing various indices of market interest rates, banks will b .. Read more at: http://economictimes.indiatimes.com/articleshow/48759459.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
