UPSC Civil Services Prelims 2016
Question 9 of 46Indian Economy
Which of the following best describes the term ‘Marginal Cost of Funds based Lending Rate (MCLR)’?
AThe rate at which RBI lends to banks overnight
BThe internal benchmark lending rate linked to the marginal cost of funds of banks
CThe minimum rate at which NBFCs can lend
DThe rate fixed by the Finance Ministry for priority sector loans
Correct Answer
The correct answer is hidden
Explanation
22 words hidden ... funds and other related costs. It replaced the earlier base rate system to improve monetary transmission. It is not the ... 22 words hidden