What is the RBI base rate?

The minimum rate set by the Reserve Bank of India (RBI), below which banks cannot lend to its customers, is known as base rate. To make sure that there is transparency in the credit market, the base rate is computed by the RBI. You can read about The Reserve Bank of India: Functions and Composition in the given link.

Further readings:

  1. Non Performing Assets (NPA) – Facts for UPSC GS-III
  2. Monetary Policy – Objectives, Roles and Instruments

Related Links

Banks in India – List of Different Types of Banks 

Banks Board Bureau (BBB) – UPSC Economics Notes

World Bank Group (WBG) – UPSC Notes

Bad Banks – Idea Proposed by Indian Banking Association (IBA) Due to COVID-19

Payment Banks- History & Regulations (UPSC Notes)

Highlights of Economic Survey 2021

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