New Register here for RBI, SEBI & NABARD strategy workshop! April 9 at 7 PM

    Question

    The minimum rate set by the Reserve Bank of India below

    which the banks are not allowed to lend to its customers is known as
    A Base Rate Correct Answer Incorrect Answer
    B REPO Rate Correct Answer Incorrect Answer
    C Teaser Rate Correct Answer Incorrect Answer
    D Floating Rate Correct Answer Incorrect Answer
    E Bank Rate Correct Answer Incorrect Answer

    Solution

    The Base rate includes all those elements of the lending rate that are common across all categories of borrowers. Banks are allowed to determine their actual lending rates on loans and advances with reference to the Base Rate and by including such other customer specific charges as considered appropriate.

    Practice Next