Harish Dhawan's blog

Respite Provided by RBI on Base Rate Mechanism Implementation Front, Banks Still do not Seem Happy

RBIDespite the fact that the Reserve Bank of India has agreed to not implement the proposed base rate mechanism for at least another three months, the country's banks still do not seem to be very happy or comfortable.

Giving ear to the many requests sent in by banks, RBI today said that the implementation would not happen till June 1, but the bankers still feel that there is much confusion on calculation of cost of deposits, which is an important element for calculating the rate to begin with.