DBOD.No.Dir.BC. 15 /13.03.00/2013-14
July 1, 2013
Ashadha 10, 1935 (Saka)
All Scheduled Commercial Banks
Dear Sir / Madam
Please refer to the Master Circular DBOD.No.Dir.BC.5/13.03.00/2012-13 dated July 2, 2012 consolidating instructions / guidelines issued to banks till June 30, 2012 on matters relating to Interest Rates on Advances. The Master Circular has been suitably updated by incorporating instructions issued up to June 30, 2013 and has also been placed on the RBI website (http://www.rbi.org.in). A copy of the Master Circular is enclosed.
(Prakash Chandra Sahoo)
Chief General Manager
Encl: as above
MASTER CIRCULAR ON INTEREST RATES ON ADVANCES
|2.3||Applicability of Base Rate|
|2.4||Floating Rate of Interest on Loans|
|2.5||Levying of penal rates of interest|
|2.6||Enabling clause in loan agreement|
|2.7||Withdrawals against uncleared effects|
|2.8||Loans under consortium arrangement|
|2.9||Charging of interest at monthly rests|
|2.10||Zero percent Interest Finance Schemes for Consumer Durables|
|2.11||Excessive interest charged by banks|
|Annex 1||Illustrative Methodology for the Computation of the Base Rate|
|Annex 2||Guidelines on Benchmark Prime Lending Rate (BPLR) applicable to loans sanctioned up to June 30, 2010|
|Annex 3||Interest Rate Structure for all Rupee Advances
including Term Loans of Commercial Banks sanctioned up to June 30, 2010
|Appendix||List of circulars consolidated|
To consolidate the directives on interest rates on advances issued by Reserve Bank of India from time to time.
A statutory directive issued by the Reserve Bank in exercise of the powers conferred by the Banking Regulation Act, 1949.
C. Previous instructions
This Master Circular consolidates and updates the instructions on the above subject contained in the circulars listed in Appendix.
To all scheduled commercial banks, excluding Regional Rural Banks.