India, Aug. 6 -- The Reserve Bank on Wednesday proposed to rationalise the regulatory framework governing interest rates across all regulated entities to improve transparency in loan pricing, strengthen monetary policy transmission and bolster consumer protection.

The Reserve Bank proposes to rationalise the regulatory framework on interest rates for all regulated entities (REs) on a principle-based basis.

"To enhance transparency in lending rates and strengthen consumer protection, it is proposed to harmonise and standardise the regulatory framework on interest rates on advances for all regulated entities," RBI Governor Sanjay Malhotra said while unveiling the third bi-monthly monetary policy review for the current fiscal.

The propose...