Base Rate

byPaytm Editorial TeamLast Updated: August 19, 2025

Definition

The Base Rate is the minimum interest rate set by the Reserve Bank of India (RBI) that banks must charge on loans.

Purpose

Introduced in 2010, the base rate ensures transparency and prevents banks from charging very high or arbitrary rates.

Benefits

  • Fair loan pricing
  • Protects borrowers
  • Brings uniformity in lending practices

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

You May Also Like

UPI Bank ClearingLast Updated: November 14, 2025

Meaning UPI Bank Clearing is the process through which banks verify and approve UPI transactions before final settlement.…

Insolvency and Bankruptcy Code (IBC)November 5, 2025

Meaning India’s law for resolving financial distress.Definition The **Insolvency and Bankruptcy Code (IBC)** is India’s unified framework for…

FintechLast Updated: August 12, 2025

Definition Fintech is short for Financial Technology. It refers to the use of technology to deliver financial services…

Deen Dayal Upadhyaya Gram Jyoti YojanaLast Updated: January 29, 2026

Meaning This initiative aims to empower rural areas through reliable electricity. Definition DDUGJY (Full form: Deen Dayal Upadhyaya…

UPI Transaction QueueLast Updated: October 21, 2025

Meaning UPI Transaction Queue is a temporary line-up of pending transactions waiting to be processed by banks. Purpose…