Monetary Policy#8: Limitations and Non-Transmission, Base Rate vs MCLR
Mrunal Patel Mrunal Patel
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 Published On Apr 6, 2017

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- Despite a rate cut of 175 basis points by RBI during January 2015 to December 2016, the banks have passed on barely 71 basis points cut in their average lending rates. So what are the factors responsibiel for this incompl
- What are the factors inhibiting the growth of bank deposits in India? Impact of Inflation and real interest rate, small savings schemes, financial repression, outward remittance, election funding and financial inclusion on banks' deposits
- Lending rate methods in India: benchmark prime lending rate. (BPLR), base rate and the latest marginal cost of fund based lending rate (MCLR).
- Despite demonetization, and the subsequent growth in bank deposits, why has MCLR lending rate not declined sufficiently?
- Criticism of Dr.Raghuram Rajan's hawkish monetary policy by Subramanian Swamy and Nirmala Sitharaman. Has it really hurt India's growth story by depriving cheap loans to MSME sectors?

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