LOANS LINKED TO REPO RATE:
Recently RBI had announced that the banks would be now advised to link the REPO rates directly with the lending rates, to ensure that the rate benefits are duly passed on the Loan customers.
- As an initiative in this direction, Bank of Maharashtra has announced that w.e.f September 1, 2019 they have decided to make the loans cheaper, and thus ensure to link its retail loans with the Repo Rate.
- For the present, the Bank adds that it will be extended to the new customers and will be slowly extended to the existing customers also.
- Already the bank has linked the Housing Loan interest rates with the Repo Rates. By linking of Repo rates to the retail loans as well, the bank would be passing on the interest rate benefits directly to the customers and thus make the retail loans cheater.
- Also, Bank of Maharashtra announced that 18 Public Sector Banks had come together in Pune as a part of the second round of the ideation exercise to streamline the banking sector as part of Government’s efforts towards making India a Five-Million-dollar economy in a period of five years.
- The first stage of the discussions in the consultation area, has designed to bring in ideas and review performance of banks and their alignment with national priorities which was held on 17th and 18th August 2019.
- This consultation is said to be the first of its kind and here the branches have also been advised to review their performance, deliberate on the issues before the banking sector and thereby bring out suggestions regarding strategies to reach the five trillion target by 2024-25.
- The consultation has brought out several implementable and new suggestions and ideas which will be gathered and presented during the national level consultation meet.