RBI Grade B Officers 2016 Sep shift 1 Paper

(3) The Marginal Cost of FundsBased Lending Rate (MCLR)methodology for fixing interestrates for advances was introducedby the RBI from April1, 2016. This new methodologyhas replaced the base ratesystem introduced in July2010. MCLR refers to the minimuminterest rate of a bankbelow which it cannot lend,except in some cases allowedby the RBI.