Home loan set to get cheaper for borrowers with older base rate regime

Agencies
February 8, 2018

New Delhi, Feb 8: The Reserve Bank of India (RBI) in its monetary policy announcement on Wednesday kept key interest rates at hold, but its observations on Marginal Cost of Funds based Lending Rates (MCLR) may bring cheers to Pre-April 2016 home loan borrowers.

The home loan rates of the Pre-April 2016 have not been revised by banks in line with market rates. These home loan borrowers, who were stuck in the older base rate regime, will now be linked to the current market-linked benchmark.

In its policy statement, RBI has asked banks to link the base rate to MCLR from April 1, 2018 to ensure expeditious transmission of its policy rate to borrowers.

RBI introduced the Marginal Cost of Funds based Lending Rates (MCLR) system with effect from April 1, 2016 on account of the limitations of the Base Rate regime.

It is observed, however, that a large proportion of bank loans continue to be linked to the Base Rate despite the Reserve Bank of India highlighting this concern in earlier monetary policy statements.

"Since MCLR is more sensitive to policy rate signals, it has been decided to harmonise the methodology of determining benchmark rates by linking the Base Rate to the MCLR with effect from April 1, 2018," RBI said

Former RBI governor Raghuram Rajan introduced the MCLR to calculate the benchmark lending rate in another attempt to make banks pass on policy rate cut benefits to borrowers quickly and in a more transparent manner.

Under the base rate and BPLR, banks were following individual methodologies for computing the minimum rate at which they could lend. Under the MCLR, RBI asked all banks to follow the marginal cost of funds method to arrive at their benchmark lending rate.

MCLR is calculated after factoring in banks' marginal cost of funds (largely, the interest at which they borrow money), return on equity (a measure of banks' profitability), and negative carry on account of cash reserve ratio.

RBI will issue necessary instructions in this regard by the end of next week.

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Agencies
August 7,2020

New Delhi, Aug 7: India's COVID-19 cases tally crossed 20 lakh mark with the highest single-day spike of 62,538 cases on Friday, said Union Ministry of Health and Family Welfare.

The COVID-19 tally rises to 20,27,075 including 6,07,384 active cases, 13,78,106 cured/discharged/migrated and 41,585 deaths, according to the Ministry of Health.

Maharashtra with 1,46,268 active cases and 3,05,521 cured and discharged patients continues to be the worst affected. The state has also reported 16,476 deaths due to the infection.

Tamil Nadu has 54,184 active cases while 2,14,815 patients have been discharged after treatment in the state. 4,461 deaths have been reported due to COVID-19 in the state.

Andhra Pradesh with 80,426 active cases is the third on the list. There are 1,04,354 cured and discharged patients and 1,681 deaths reported from the state.

Delhi now has 10,072 active cases and 1,26,116 cured and discharged patients. 4,044 people have lost their lives due to the disease in the Union Territory so far. 

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Agencies
February 4,2020

New Delhi, Feb 4: Four-month-old Mohammed Jahaan accompanied his mother almost every day to the Shaheen Bagh demonstration where he was a favourite with the protesters who would take turns to hold him and often draw the tricolour on his cheeks.

Jahaan will not be seen at Shaheen Bagh anymore. He died last week after acquiring a severe cold and congestion following exposure to the winter chill at the outdoor demonstration. His mother is, however, undeterred and determined to participate in the protests, saying it is "for the future of my children".

The infant's shattered parents, Mohammed Arif and Nazia, live in a tiny shanty put together with plastic sheets and cloth in Batla House area and have two other children -- a five-year-old daughter and a one-year-old son.

Hailing from Bareilly in UP, the couple is barely able to make ends meet. Arif is an embroidery worker and also drives an e-rickshaw. His wife helps him in his embroidery work.

"I haven't been able to earn enough in the last month despite driving the battery rickshaw in addition to my embroidery work. Now with our baby's demise, we have lost everything," he said, showing a picture of little Jahaan wearing a woolen cap that read 'I Love My India'.

A visibly disturbed Nazia said Jahaan passed away in his sleep on night of January 30 after returning from the protests.

"I had returned from Shaheen Baag at around 1 AM. After putting him and other kids to sleep, even I went to sleep. In the morning, I suddenly found him motionless. He was gone in his sleep," she said.

The couple said they took their motionless baby to the nearby Alshifa Hospital on the morning of January 31 where he was declared dead on arrival.

Nazia, who had been visiting the Shaheen Bagh demonstration everyday with Jahaan since December 18, says that he died after catching a cold that turned lethal.

She said she didn't realise that his congestion was so severe. However, the baby's death certificate issued by the hospital does not mention any specific reason for the death.

Shazia, a neighbour who was present at the couple's home, said Nazia had fought with her mother and husband to visit Shaheen Bagh everyday. Nazia would gather all women in the bylane outside her house so that they could together walk to the demonstration, around 2 km away. Sometimes, Arif would drop some of them to Shaheen Bagh on his e-rickshaw.

Nazia said she strongly feels that the CAA and NRC are against the welfare of all communities and will join the Shaheen Bagh protests, but this time without her children.

"Why was I doing this? For my children and the children of all us who need a bright future in this country," she told PTI.

"The CAA divides us on religion and should never be accepted. I don't know if there is politics involved but I know that I must question what is against the future of my children."

Arif, however, blamed the NRC and CAA for his child's death.

"Had the government not brought CAA and NRC, people would not have protested and my wife would not have joined them, my son would have been alive," he said.

Comments

Angry Indian
 - 
Tuesday, 4 Feb 2020

inna lillahi inna ilaihi rajioon...so sad

 

Modi, delhi police and Amith Shah the biggest EVIL of india is responsible for this samll soul death...

 

you have to answer one day after you die...dont think this world is permenant..

 

you will never see heaven forever...you must root in hell

 

GADDAR PM & HM

 

Jai Hind

 

 

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News Network
January 8,2020

Sydney, Jan 8:  Authorities in Australia will begin five-day campaign to kill thousands of camels in the country as they drink too much water amid the wildfires.  The government will send helicopters to kill up to 10,000 camels in a five-day campaign starting Wednesday, The Hill reported citing The Australian.

Marita Baker, an Anangu Pitjantjatjara Yankunytjatjara (APY) (large, sparsely-populated local government area for Aboriginal Australians) executive board member, said that the camels were causing problems in her community of Kanypi.

"We have been stuck in stinking hot and uncomfortable conditions, feeling unwell, because the camels are coming in and knocking down fences, getting in around the houses and trying to get to water through air conditioners,'' she said.

The planned killing of the camels comes at a time the country is ravaged by wildfires since November. The disaster has killed more than a dozen people and caused the displacement or deaths of 480 million animals, according to University of Sydney researchers.

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