New Delhi, Aug. 13 -- The Reserve Bank of India (RBI) has proposed a harmonised framework for determining interest rates on loans, seeking to make lending practices more transparent and consistent across banks and other regulated lenders. The draft framework proposes board-approved pricing policies, benchmark-linked rates and safeguards against excessive pricing of small-value loans.

The proposals are part of the RBI's broader effort to improve monetary policy transmission, ensure that credit is priced according to risk and provide borrowers with greater clarity on how their loan rates are determined. The draft rules are open for public comments until 11 September 2026 and are proposed to take effect from 1 April 2027.

Importantly, the ...