Whether banks can charge interest rate without reference to their own BPLR?
Yes. Banks are free to determine the rates of interest without reference to their BPLR and regardless of the size, in respect of following loans: (i) a. Loans for purchase of consumer durables. b. Loans to individuals against shares and debentures/ bonds c. Other non-priority sector personal loans including credit card dues. d. Advances/ overdrafts against domestic/ NRE/ FCNR(B) deposits with the bank, provided that the deposit/s stands/ stand either in the name(s) of the borrower himself/ borrowers themselves, or in the names of the borrower jointly with another person. e. Finance granted to intermediary agencies (excluding those of housing) for on-lending to ultimate beneficiaries and agencies providing input support. f. Finance granted to housing finance intermediary agencies for on-lending to ultimate beneficiaries g. Discounting of Bills h. Loans/Advances/Cash Credit/Overdrafts against commodities subject to Selective Credit Control (ii) Loans covered by participation in interest
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