[amp_mcq option1=”1st May 2010″ option2=”1st June 2010″ option3=”1st July 2010″ option4=”1st August 2010″ correct=”option1″]
The correct answer is: A. 1st May 2010
The Base Rate system replaced the Benchmark Prime Lending Rate (BPLR) with effect from 1st May 2010. The Base Rate is the minimum interest rate that banks charge their best customers for loans. It is set by the Reserve Bank of India (RBI) and is reviewed every six months. The BPLR was a lending rate that banks used to charge their customers for loans. It was based on the bank’s cost of funds and the risk involved in lending money. The BPLR was abolished in May 2010 and replaced by the Base Rate. The Base Rate is a more transparent and market-based lending rate. It is based on the bank’s cost of funds and the risk involved in lending money, as well as the RBI’s repo rate. The repo rate is the interest rate at which banks borrow money from the RBI. The Base Rate is reviewed every six months by the RBI. The Base Rate is a more transparent and market-based lending rate than the BPLR. It is based on the bank’s cost of funds and the risk involved in lending money, as well as the RBI’s repo rate. The Base Rate is reviewed every six months by the RBI.
Option B is incorrect because the Base Rate system was implemented on 1st May 2010, not 1st June 2010.
Option C is incorrect because the Base Rate system was implemented on 1st May 2010, not 1st July 2010.
Option D is incorrect because the Base Rate system was implemented on 1st May 2010, not 1st August 2010.