Pricing of credit by NBFC-MFIs- applicable average base rate

RBI issued notification for capping pricing of Micro Financial Institution (NBFC-MFI) vide Notification No. RBI/2013-14/482 DNBS (PD) CC.No.369/03.10.038/2013-14 dated February 7, 2014 , which came into effect from the quarter beginning April 01, 2014 and made it compulsory for all NBFC - MFI to charge interest rate lower of the following:

i. The cost of funds plus margin as indicated in the company circular DNBS. (PD)CC.No.300/03.10.38/2012-13 dated August 3, 2012 read with circular DNBS(PD) CC.No.327/03.10.038/2012-13 dated May 31, 2013; or

ii. The average base rate of the five largest commercial banks by assets multiplied by 2.75.

The average of the base rates of the five largest commercial banks shall be advised by the Reserve Bank on the last working day of the previous quarter, which shall determine interest rates for the ensuing quarter.

Please refer below compendium of average of base rates of 5 largest commercial banks – as notified by RBI on the last day of the last working day of the previous quarter, which determines interest rates for the ensuing quarter.

Quarter beginning with	Quarter, FY	Average of base rates of 5 largest commercial banks (%)	Download Link
Quarter beginning July 01, 2016	Q2, 2016 - 17	9.44	Click here
Quarter beginning Apr 1, 2016	Q1, 2016 - 17	9.44	Click here
Quarter beginning Jan 1, 2016	Q4, 2015 - 16	9.45	Click here
Quarter beginning Oct1, 2015	Q3, 2015 - 16	9.82	Click here
Quarter beginning July 1, 2015	Q2, 2015 - 16	9.89	Click here
Quarter beginning April 1, 2015	Q1, 2015 - 16	10.09	Click here
Quarter beginning Jan 1, 2015	Q4, 2014 - 15	10.09	Click here
Quarter beginning Oct 1, 2014	Q3, 2014 - 15	10.09	Click here
Quarter beginning July 1, 2014	Q2, 2014 - 15	10.09	Click here
RBI Notification No. Feb 7, 2014			Click here

By BND