Correct option is B
The Correct Answer is: (B) Decreased from 9.91% to 9.90%
Explanation:
As per data from the Reserve Bank of India (RBI), the Weighted Average Lending Rate (WALR) on outstanding rupee loans of Scheduled Commercial Banks (SCBs)
As per data from the Reserve Bank of India (RBI), the Weighted Average Lending Rate (WALR) on outstanding rupee loans of Scheduled Commercial Banks (SCBs)
in India decreased slightly from 9.91% in August 2024 to 9.90% in September 2024. This minor dip indicates a modest easing in lending conditions on existing loans,
reflecting the gradual pass-through of monetary policy adjustments and competitive dynamics in the banking sector.
Information Booster:
• Impact of WALR Changes:
• Impact of WALR Changes:
Borrowers :A decrease in WALR can reduce the interest burden on existing loans.
Banks :Lower WALR may impact net interest margins, affecting profitability.
• A fall in WALR suggests banks are offering slightly more favorable lending terms to existing borrowers.
• This rate is a key indicator of monetary transmission—how RBI policy rates affect market lending rates.
• The RBI’s stance on the repo rate influences banks' lending and deposit rates, which in turn affect WALR.
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