UPSC Prelims 2016 · GS Paper 1 · Q43
Economy
Medium · Marginal Cost of Funds based Lending Rate (MCLR)
Consider the following statements regarding the purposes of RBI's Marginal Cost of Funds based Lending Rate (MCLR) framework:
1. It aims to improve transparency in how banks set their lending rates.
2. It aims to ensure fair pricing of loans for both borrowers and banks.
Which of the statements given above is correct?