Question
According to the Reserve Bank of India (Interest Rate on
Advances) Directions, 2016, banks have the option to consider the outstanding balances of deposits and other borrowings as of which day prior to the date from which the MCLR becomes effective?Solution
Banks shall have the option to reckon the outstanding balances of deposits and other borrowings as on any day, not more than seven calendar days, prior to the date from which the MCLR becomes effective. The chosen time lag shall be maintained consistently for a period of not less one year.
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