New lending rate regime RBI incorporated major demands of the banks Banks in India will move to a new lending rate regime of Marginal Cost of Funds based Lending Rate (MCLR) from April 1, 2016. The new regime will replace the common base rate system that largely proved ineffective in transmission of policy rates. Contrary to the earlier belief new guidelines are much more relaxed as compared to draft guidelines. The major highlights of the new guidelines are as follow: ff All rupees denominated loans from 1st April 2016 will be linked to Marginal Cost of Funds based Lending Rate (MCLR), which will be calculated by banks on monthly basis....