Question

What is/are the purpose/purposes of the 'marginal cost of funds based lending rate (mclr)' announced by rbi?

Answer 1

Answer:

Explanation:The marginal cost of funds based lending rate or the MCLR as commonly used, refers to the minimum rate of interest charged by a bank below which it cannot lend. Although in certain cases RBI may allow it to do away with the MCLR rate. It is regarded as the reference or standard rate for the bank.