As per RBI Circular issued on 4th September, 2019 in relation to “External Benchmarking of Retail and SME Advances” and on 26th February 2020 on “External Benchmark Based Lending”, all Banks are required to link Retail Advances, and Advances given to Micro, Small Enterprises from 1st October 2019 onwards and Advances given to Medium Enterprises from 1st April 2020 onwards, with certain External Benchmark.
Based on the same, it has been decided to link all Retail and MSME (Micro, Small & Medium Enterprises) Advances linked with External Benchmark Linked Rate (linked to RBI Repo Rate). The External Benchmark Linked Rate w.e.f. 1st April 2024 will be 10.95% p.a. (Repo Rate: 6.50% p.a. + Spread: 4.45% p.a.) till further order.