Whether the revised BPLRs will be applicable to the existing advances?
Yes. Banks are required to invariably incorporate the following proviso in loan agreements in the case of all advances, including term loans, enabling banks to charge the applicable interest rate in conformity with the directives issued by RBI, except in case of Fixed Rate Loans – “Provided that the interest payable by the borrower shall be subject to the changes in interest rates made by the Reserve Bank from time to time”.
