RBI Invites Public Comments On Draft Rules To Standardise Interest Rate Setting For Bank And NBFC Loans
Mumbai, August 12, 2026: The Reserve Bank of India on Wednesday issued a proposed harmonised framework for the determination of interest rates on both fixed-rate and floating-rate loans across banks, NBFCs and other regulated lenders, with tighter rules around benchmark-linked lending and spread revisions. The directions, proposed to take effect from April 1, 2027, are aimed at ensuring…
The Reserve Bank of India (RBI) has proposed a new framework to standardise interest rate setting for bank and non-banking financial company (NBFC) loans, with tighter rules around benchmark-linked lending and spread revisions. The proposed framework, which is set to take effect from April 1, 2027, aims to ensure uniformity, transparency, and consumer protection in the lending sector.
Public comments on the draft Reserve Bank of India (Interest Rates on Loans and Advances) Directions, 2026, are being invited until September 11, 2026. The framework applies to various regulated entities, including commercial banks, NBFCs, regional rural banks, urban and rural cooperative banks, all-India financial institutions, and housing finance companies.
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