Lending and Deposit Rates of Scheduled Commercial Banks – September 2026
Distilled Policy Brief
- The 1-Year median Marginal Cost of Funds based Lending Rate (MCLR) of SCBs declined to 8.61 per cent in September 2026 from 8.70 per cent in August 2026.
🎯 Prelims High-Yield Examination Points
Comparison of EBLR and MCLR lending rate regimes and their respective shares in outstanding floating rate loans of Scheduled Commercial Banks.
⚖️ Mains Analytical & Syllabus Linkages
Evaluating the efficacy of monetary policy transmission in India through the adoption of External Benchmark-based Lending Rates (EBLR).
🎯 UPSC Prelims Practice Drill
With reference to the lending and deposit rates of Scheduled Commercial Banks (SCBs) in India, consider the following statements: 1. The share of External Benchmark based Lending Rate (EBLR) linked loans in total outstanding floating rate rupee loans of SCBs is higher than that of Marginal Cost of Funds based Lending Rate (MCLR) linked loans. 2. The Weighted Average Lending Rate (WALR) on fresh rupee loans of SCBs in August 2026 was lower than the WALR on outstanding rupee loans in the same month. 3. The 1-Year median MCLR of SCBs registered an increase between August 2026 and September 2026. Which of the statements given above are correct?
- [A] 1 and 2 only
- [B] 2 and 3 only
- [C] 1 and 3 only
- [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
Statement 1 is correct: As of end-June 2026, the share of EBLR-linked loans in total outstanding floating rate rupee loans of SCBs was 68.2%, whereas the share of MCLR-linked loans was lower at 29.6%. Statement 2 is correct: In August 2026, the WALR on fresh rupee loans stood at 8.61%, which was lower than the WALR on outstanding rupee loans of 8.96%. Statement 3 is incorrect: The 1-Year median MCLR of SCBs declined to 8.61% in September 2026 from 8.70% in August 2026, rather than increasing.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.