The RBI, which had set the April 1 as the deadline for banks to migrate to the base-rate regime, has given the banks a three-month breather to move to base rate. The loans against fixed deposits, staff loans and DIR loans are exempted from base rate. While determining the base rate banks have to take into account the cost of deposits, adjustments for negative-carry for CRR and SLR, unallocated overhead costs. Bankers request for lending below the base rate for corporates (short term) was not considered fauvorably by the RBI.
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