Question

    Under which act did the Reserve Bank of India (RBI) introduce the 'Marginal Cost of Funds Based Lending Rate' (MCLR) system to determine lending rates?

    A RBI Act, 1934 Correct Answer Incorrect Answer
    B Banking Regulation Act, 1949 Correct Answer Incorrect Answer
    C Companies Act, 2013 Correct Answer Incorrect Answer
    D Negotiable Instruments Act, 1881 Correct Answer Incorrect Answer
    E Banking Laws (Amendment) Act, 2012 Correct Answer Incorrect Answer

    Solution

    The RBI introduced the MCLR system under the Banking Laws (Amendment) Act, 2012, to improve transparency in the determination of lending rates by banks.

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