The Reserve Bank of India (RBI) has decided to reduced the minimum lending rate of urban co-operative banks (UCBs) by 1 per cent from 13 per cent to 12 per cent. The reduced rate has come into effect from March 2, 2002.
UCBs had been asking the central bank for reduction in minimum lending rate in order to offer competitive rates to the borrowers.
The RBI stated in its release the rates were reduced after examining various representations by the co-operative banks.
