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Interest below which a bank is not expec...

Interest below which a bank is not expected to lend to customers is known as ____________.

A

Deposit Rate

B

Base Rate

C

Prime Lending Rate

D

Bank Rate

Text Solution

Verified by Experts

The correct Answer is:
B
The Base Rate is the minimum interest rate of Bank below which it cannot lead, except in cases allowed by the Reserve Bank of India. The Base Rate system replaced the Benchmark Prime Lending Rate (BPLR system) with effect from July 1, 2010.
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