Economics · Economy
Based on the observations and recommendations of the Dr. Janak Raj Study Group on the marginal cost of funds based lending rate (MCLR) system, consider the following statements: 1. The internal benchmarks, including the base rate and MCLR, successfully delivered effective transmission of monetary policy across the banking sector. 2. The integrity of the interest rate setting process was undermined due to arbitrariness in calculating the base rate and MCLR, as well as the spreads charged over them. 3. The base rate and MCLR regime was found to be fully synchronized with global practices regarding the pricing of bank loans. 4. The Study Group recommended a switchover to an external benchmark in a time-bound manner to resolve the identified inefficiencies. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statements 1 and 3 only
- 2Statements 2 and 4 only✓
- 3Statements 1, 2, and 4 only
- 4Statements 2, 3, and 4 only
Correct answer
Statements 2 and 4 only
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