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Informist, Wednesday, Aug. 5, 2026

--RBI Malhotra: To harmonise norms on regulated cos interest rate on loans 
--RBI Malhotra: Propose to harmonise framework of interest rates on loans 

NEW DELHI – The Reserve Bank of India has proposed to rationalise the regulatory framework governing interest rates for all regulated entities on a principle-based approach. The aim is to harmonise guidelines across regulated entities while keeping proportionality intact, the RBI said.

"In order to enhance transparency in lending rates and strengthen consumer protection, it is proposed to harmonise and standardise the regulatory framework on interest rates on advances for all regulated entities," Governor Sanjay Malhotra said while detailing the third bi-monthly Monetary Policy Committee outcome Wednesday.

The central bank's proposed rationalisation framework also aims to address certain operational aspects of the current framework on marginal cost of funds-based lending rate and external benchmark lending rate, and to standardise divergent market practices on interest charging, including day count conventions and benchmark reset dates.

The central bank said these steps are aimed at bringing uniformity, improving transparency in loan pricing, strengthening monetary transmission, and enhancing consumer protection. Draft directions will be issued soon for public comments, the RBI said.  End

Reported by Vaishali Tyagi

Edited by Deepshikha Bhardwaj

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