Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Whether banks are permitted to charge interest below their declared BPLR under consortium arrangement to offer a rate comparable to that of the leader bank?

April 26, 2017Arrangement Banks bplr charge comparable consortium declared Offer permitted rate

0

Posted

Whether banks are permitted to charge interest below their declared BPLR under consortium arrangement to offer a rate comparable to that of the leader bank?

1 Answer

0

Posted

No. Banks need not charge a uniform rate of interest even under a consortium arrangement. Each member bank should charge rate of interest on the portion of the credit limits extended by them to the borrowers subject to their BPLR.