The Reserve Bank of India (RBI) increases the Marginal Cost of Lending Rate (MCLR) upwards.

The Indian Overseas Bank (IOB) has decided to increase its Marginal Cost of Funds based Lending Rate (MCLR) for certain tenors. The rate will increase by 5 basis points (bps) for three, six, and one-year tenors, and by 10 bps for the two-year tenor. The new MCLR rates will be effective from January 15. The specific rate increases are: 8.65% for the three-month tenor, 8.90% for the six-month tenor, and 9.10% for the one-year and two-year tenors. A basis point is equal to 0.01%. The decision was made by IOB’s Assets and Liabilities Management Committee during a meeting on Friday, January 11.