RBI's own words: “vide our circular DBOD. No. Dir. BC. 73/ 13.03.00/ 2010-11 dated January 6, 2011” — RBI/2013-14/211
Source: Reserve Bank of India · RBI/2010-11/361 · issued 06 Jan 2011 · ~1 min read
Quick answerRBI extends the deadline for banks to change their Base Rate benchmark and methodology by six months, now up to June 30, 2011, giving lenders more time to adjust their pricing frameworks.
The rule, in the simplest words
Banks have more time to change their Base Rate [main interest rate] benchmark and methodology until June 30, 2011
The deadline was extended by six months to help lenders adjust their pricing frameworks
Banks can keep using their current approaches while preparing for future changes, reducing operational disruption
How it plays out — a real example
A treasury officer in Mumbai can now breathe a sigh of relief as she has more time to review and plan the transition to a new Base Rate benchmark, ensuring a smooth process for her team and reducing the pressure to meet the original deadline. She can work closely with the risk team to align on the revised timeline and monitor RBI circulars for further guidance. This extension allows her to focus on making the necessary changes without rushing, ultimately benefiting the bank's lending operations.
What changed
RBI partially modified paragraph 2(iii) of its April 9, 2010 circular on Base Rate guidelines. Banks are now permitted to change the benchmark and methodology used in Base Rate computation for an additional six months, until June 30, 2011.
What it means for you
This extension gives banks more breathing room to transition to a new Base Rate benchmark or methodology without immediate compliance pressure. Lenders can continue using existing approaches while preparing for any future changes, reducing operational disruption.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review your current Base Rate benchmark and methodology to assess if a change is needed by June 30, 2011.
Plan internal timelines for any benchmark or methodology transition to meet the extended deadline.
Communicate with your treasury and risk teams to align on the revised timeline.
Monitor RBI circulars for any further guidance on Base Rate computation.
Who it affects
All scheduled commercial banks (excluding RRBs), Bank treasury and ALM teams, Retail and corporate lending divisions
RBI’s words: “vide our circular DBOD. No. Dir. BC. 73/ 13.03.00/ 2010-11 dated January 6, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/361
DBOD.No.Dir.BC.73/13.03.00/2010-11
January 6, 2011
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir / Madam,
Guidelines on the Base Rate
Please refer to our circular DBOD.No.Dir.BC.88/13.03.00/2009-10 dated April 9, 2010 .
2. In partial modification of paragraph 2(iii) of the above mentioned circular, we advise that banks are permitted to change the benchmark and methodology used in the computation of Base Rate for a further period of six months i.e. upto June 30, 2011.
Yours faithfully,
(P. R. Ravi Mohan)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/361 · issued 06 Jan 2011. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6203&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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