The proposed introduction of a base rate for banks by the RBI will not serve the desired purpose. PLR/ Below PLR has miserably failed to bring transparency in lending rates by banks. All big advances are now much below PLR rates. In many cases, banks have lent money below 5 per cent per annum to big Indian companies, but loans to really needy, small borrowers are never given at less than 10 per cent. The new base rate, BR, will only bring new nomenclature in banking and nothing else.
Sudhir K Bhave, Mumbai