Saloni Shukla, ET Bureau Dec 17, 2015, 07.29PM IST

MUMBAI: The Reserve Bank of India has directed banks to set five benchmark rates for different tenure ranging from overnight rates to one year, which will come into effect from April 1, 2016.

In a new set a guidelines aimed at improving transmission of policy rates to end customers, RBI has issued a new formula to price lending rates known as ‘marginal cost of funds based lending rates’ or MCLR which will replace the base rate.