The Reserve Bank of India on Wednesday issued draft amendments for a proposed harmonised framework for interest rates on loans and advances across banks and other regulated entities, with tighter rules around benchmark-linked lending, spread revisions and interest calculation.
The draft Reserve Bank of India (Interest Rates on Loans and Advances) Directions, 2026, issued for public consultation, follows the central bank’s August 5 announcement that it would rationalise the regulatory framework for loan interest rates.
