RBI sets NBFC-MFIs' average base rate at 9.21% for Apr-Jun

The Reserve Bank Friday set the average base rate to be charged from borrowers by non-banking financial companies (NBFCs) and micro-finance institutions (MFIs) at 9.21 per cent for the first quarter of the next fiscal.

The applicable average base rate to be charged by Non-Banking Financial Company Micro Finance Institutions (NBFC-MFIs) to their borrowers for the quarter beginning April 01, 2019 will be 9.21 per cent, the RBI said in a notification.

The regulator in February 2014 had issued directions to NBFC-MFIs regarding pricing of credit.

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The RBI, on the last working day of every quarter, comes out with the average of the base rates of the five largest commercial banks for the purpose of arriving at the interest rates to be charged by NBFC-MFIs to its borrowers in the ensuing quarter.