The applicable average base rate for Non-Banking Financial Company-Micro-Finance Institutions (NBFC-MFIs) to arrive at the interest rates they can charge their borrowers for the quarter beginning July 01, 2014 is 10.09 per cent. This was communicated by the Reserve Bank of India.

Background

In its circular dated February 7, 2014 issued to NBFC-MFIs regarding pricing of credit, the Reserve Bank had stated that it will advise the average of the base rates of the five largest commercial banks on the last working day of the quarter, for the purpose of arriving interest rates to be charged by NBFC-MFIs to borrowers in the ensuing quarter.

Alpana Killawala
Principal Chief General Manager

Press Release: 2013-2014/2532