RBI plans committee on fixed interest rate products

The RBI Deputy Governor, Mr Anand Sinha, today said the central bank plans to set up a working group committee to introduce more long-term fixed interest rate loan products.

"A variety of fixed interest rate loan products are imperative considering that currently the banks offer fixed rates on deposits and mostly floating rates on home loans, which exposes borrowers to uncertain rate movements," said Mr Sinha.

He said this as he inaugurated an Assocham industry interactive session on banking sector held in Mumbai today.

"We have taken an initiative by setting up a Financial Sector Legislative Reforms Commission (FSLRC) which seeks to rewrite and streamline the financial sector laws, rules and regulations to bring them in harmony with India’s fast growing financial sector," added Mr Sinha.

Mr Sinha further said, we need to be proactive in credit monitoring and restructuring is significant to manage advanced portfolio.