RBI To Standardize Interest Rates

The Reserve Bank of India plans to standardize interest rate rules for all regulated entities. The proposed changes are unlikely to affect EMIs or bring NBFCs into the external benchmark regime. The new framework aims to increase transparency and ensure uniformity across lending.

The RBI has also proposed new leverage ratio requirements for banks. Globally systemic important banks will have a minimum 3.5% ratio plus a buffer. Domestic systemically important banks will continue with their 4% ratio mandate, and other commercial banks will maintain the existing 3.5% leverage ratio.