Poket News

RBI’s benchmark rule credit negative: Moody’s

  • The Reserve Bank of India’s mandate asking banks to  link their lending rates on floating rate loans to retail,  personal and micro, small and medium enterprises  borrowers to an external benchmark from 1 October  is credit negative for domestic banks, Moody’s said.
  • Under the new regime, only non-CASA deposits will  see a repricing on deposits. 
  • RBI has cut the repo rate by 110 basis points from  6.5% to 5.4% since January.