RBI sets average base rate of 9.18 pc for NBFC-MFI borrowers for July qtr

The Reserve Bank Friday set an average base rate of 9.18 per cent for non-banking financial companies and microfinance institutions to be charged from their customers for the quarter beginning July 1.

"The applicable average base rate to be charged by non-banking financial companies and microfinance institutions (NBFC-MFIs) to their borrowers for the quarter beginning July 1, 2019, will be 9.18 per cent," RBI said in a release. The central bank in a circular in 2014 had communicated to NBFCs and MFIs regarding the pricing of credit on the last working day of every quarter.

RBI sets the average base rate for NBFC-MFIs on the basis of the average the base rate of the five largest commercial banks.