When the RBI cuts the repo rate by 25 basis points, how long does it take for that cut to reach the interest rate on your savings account? The honest answer: it depends on which lending rate regime your loan is under, whether your deposit is term or savings, and whether your bank is a commercial bank, an NBFC, or a co-operative.
The story of Indian interest rate regulation is the story of three successive attempts to make bank rates actually respond to monetary policy — from the Benchmark Prime Lending Rate that banks could lend below, to the Base Rate that they couldn't, to the MCLR that was supposed to be marginal-cost-linked but wasn't, to the External Benchmark that finally tied retail loans directly to the repo rate.
See also: Deposit & Savings Regulation
Statistics
| Era | Count |
|---|---|
| pre-2005 | 10 |
| 2005-12 | 9 |
| 2013-19 | 6 |
| 2020-26 | 6 |
| Undated | 1 |
- Total notifications: 32
- Hub nodes (>3 refs): 7
- Withdrawn: 0
| Department | Count |
|---|---|
| RPCD | 7 |
| DOR | 6 |
| DBOD | 3 |
| DBR | 1 |
The broader debate over whether to free deposit rates from regulatory control was crystallised in November 2010 when the RBI released a discussion paper specifically examining savings bank deposit rate deregulation — see RBI releases Discussion Paper on Deregulation of Savings Bank Deposit Rate (PR_24308).
Key Circulars and Directions
The following 7 notifications are the most-referenced documents in the Lending Rate Framework (Base Rate/MCLR/EBLR) chain — each cited by 4 or more subsequent circulars.
2005–2012 (4 hub circulars)
Guidelines on the Base Rate — April 9, 2010 | 16 downstream refs
RBI/2009-10/390
"Guidelines on the Base Rate Following the announcement in the Annual Policy Statement for the year 2009-10, Reserve Bank of India constituted a Working Group on Benchmark Prime Lending Rate (Chairman: Shri Deepak Mohanty) to review the present benchmark prime lending rate (BPLR) system and suggest changes to make credit pricing more transparent. The Working Group submitted its report in October..."
Attachments: Attachment, Annex
Guidelines on the Base Rate — January 6, 2011 | 7 downstream refs
RBI/2010-11/361
"Guidelines on the Base Rate Please refer to our circular DBOD.No.Dir.BC.88/13.03.00/2009-10 dated April 9, 2010 . 2. In partial modification of paragraph 2(iii) of the above mentioned circular, we advise that banks are permitted to change the benchmark and methodology used in the computation of Base Rate for a further period of six months i.e. upto June 30, 2011. Yours faithfully, (P. R. Ravi..."
References: ID 5579
Attachments: Attachment
Guidelines on Base Rate — February 21, 2011 | 5 downstream refs
RBI/2010-11/411
"Guidelines on Base Rate Please refer to our circular No. DBOD.Dir.BC.88/13.07.001/2009-10 dated April 9, 2010 and our letter DBOD.Dir.No. 21957/13.07.001/2009- 10 dated June 24, 2010 addressed to IBA on the subject. 2. Government of India, Ministry of New and Renewable Energy (MNRE) has formulated a scheme on financing of Off-Grid and Decentralised Solar (Photovoltaic and Thermal) applications as..."
References: ID 5579
Attachments: Attachment
Guidelines on Base Rate — September 9, 2011 | 4 downstream refs
RBI/2011-12/170
"Guidelines on Base Rate Please refer to our circular No. DBOD.Dir.BC.88/13.07.001/2009-10 dated April 9, 2010 and our letter DBOD.Dir.No. 21957/13.07.001/ 2009- 10 dated June 24, 2010 addressed to Indian Banks’ Association (IBA) on the subject. 2. The National Scheduled Tribes Finance and Development Corporation (NSTFDC), a wholly owned Government of India Section 25 Company under the Ministry of..."
Attachments: Attachment
2020–2026 (3 hub circulars)
Reserve Bank of India (Commercial Banks – Interest Rates on Advances) Directions, 2025 — November 28, 2025 | 12 downstream refs
"In these Directions, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below: (1) ‘Advance against own deposit’ means advance granted against Rupee/ FCNR(B) term deposit and the deposit stands in the name of: the borrower, either singly or jointly. one of the partners of a partnership firm and advance is made to the said firm. the proprietor of a..."
References: ID 13170
Attachments: Attachment, Annex, Annex
Reserve Bank of India (Small Finance Banks – Interest Rates on Advances) Directions, 2025 — November 28, 2025 | 12 downstream refs
"In these Directions, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below: (1) ‘Advance against own deposit’ means advance granted against Rupee/ FCNR(B) term deposit and the deposit stands in the name of: the borrower, either singly or jointly. one of the partners of a partnership firm and advance is made to the said firm. the proprietor of a..."
References: ID 13170; Reserve Bank of India (Small Finance Banks – Credit Faciliti
Attachments: Attachment, Annex, Annex
Reserve Bank of India (Local Area Banks – Interest Rates on Advances) Directions, 2025 — November 28, 2025 | 4 downstream refs
"In these Directions, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below: (1) ‘Advance against own deposit’ means advance granted against Rupee/ FCNR(B) term deposit and the deposit stands in the name of: the borrower, either singly or jointly. one of the partners of a partnership firm and advance is made to the said firm. the proprietor of a..."
References: ID 13170; Reserve Bank of India (Local Area Banks – Credit Facilities)
Attachments: Attachment, Annex, Annex
Amendment and Supersession Chains
Found 2 cross-references among hub nodes:
| From (referenced) | → | To (referencing) | Context |
|---|---|---|---|
| 5579: Guidelines on the Base Rate (April 9, ) | → | 6203: Guidelines on the Base Rate (January 6,) | Please refer to ourcircular DBOD.No.Dir.BC.88/13.03.00/2009-10 dated April 9, 2010. |
| 5579: Guidelines on the Base Rate (April 9, ) | → | 6270: Guidelines on Base Rate (February 2) | Please refer to ourcircular No. DBOD.Dir.BC.88/13.07.001/2009-10 dated April 9, 2010and our letter D |
Last updated: April 2026