More Stories

Informist, Wednesday, Aug. 5, 2026

 

Please click here to read all liners published on this story

--RBI Malhotra: NIM compression led to new norms on loan interest rates
--RBI Malhotra: Loan interest rate norms to standardise rule for regulated cos
--RBI Malhotra: Loan interest rate norms to aid consumer protection
--RBI Malhotra: There is no major change due to interest calculation norms
--RBI Murmu: Loan interest rate draft norms to be released soon
 

 

MUMBAI – Reserve Bank of India Governor Sanjay Malhotra Wednesday said the central bank's proposed norms on loan interest rate calculations are intended to standardise practices across regulated entities and strengthen consumer protection, adding that the framework will not result in any major substantive changes. 

 

Responding to queries during the post-monetary policy press conference, Malhotra said the draft guidelines were prompted by the compression in net interest margins, which had highlighted the need for greater standardisation in the way loan interest rates are calculated and disclosed. He said the proposed framework would bring uniformity across all RBI-regulated entities. 

 

"The exercise is essentially a rationalisation that will help consumer protection," Malhotra said, adding that the objective is to standardise rules applicable to regulated entities rather than introduce fundamental changes in loan pricing. 

 

He clarified that there would be "no major change" arising from the proposed norms on interest calculation and said market participants should wait for the draft guidelines for detailed provisions. The governor also said the proposed framework is largely conduct-related and should not be interpreted as introducing substantive changes to existing lending practices.

 

Deputy Governor Shirish Chandra Murmu said the RBI would release the draft guidelines on loan interest rate calculations shortly, following which stakeholders would get a clarity on the detailed provisions. 

 

The RBI's Monetary Policy Committee Wednesday left the policy repo rate unchanged at 5.25%. The MPC also decided to retain the neutral stance to respond appropriately to macroeconomic developments.  End

 

Reported by Kabir Sharma

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.