Home loan, other borrowers can switch to fixed rate: RBI

Representation Pic

The Reserve Bank on Thursday said it will come out with a framework allowing borrowers to switch to fixed interest rate from floating interest rate, a move that would provide relief to borrowers of home, auto and other loans reeling under the impact of high interest rate.

Unveiling the bi-monthly monetary policy, Reserve Bank Governor Shaktikanta Das said under the framework, to be put in place shortly, the lenders will have to clearly communicate with the borrowers about tenor and EMI. The detailed guidelines in this regard would be issued shortly, he said.

Repo rate unchanged

The RBI left its key interest rates unchanged at 6.50 per cent for a third straight meeting, but signalled tighter policy if food prices drive inflation higher. "Inflationary risks persist amid volatile international food and energy prices, lingering geopolitical tensions and weather-related uncertainties," he added.

Tomato export

Finance Minister Nirmala Sitharaman on Thursday said the government is taking steps to control inflation and as part of the measures tomatoes are being imported from Nepal to meet the demand and check prices. Sitharaman said Tur dal is being imported from Mozambique and Urad dal will be imported from Myanmar.

6.50%
Repo rate, which RBI kept unchanged again

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