---
title: "Benchmark Prime Lending Rate (BPLR): Meaning"
description: "The Benchmark Prime Lending Rate (BPLR) was India's pre-2010 lending benchmark, set by each bank's board. See why the RBI replaced it with the Base Rate."
url: "https://modeldiplomat.com/learn/glossary/prime-lending-rate"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Benchmark Prime Lending Rate was the reference interest rate at which Indian commercial banks lent to their most creditworthy borrowers, introduced by the Reserve Bank of India in 2003.
- Why did the RBI replace the BPLR with the Base Rate in 2010?
- How was the BPLR calculated?
- What is the difference between the BPLR and the MCLR?
- Is the BPLR still in use in India?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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## Timeline

1. 1 July 2010

   Acting on its recommendations, the RBI introduced the Base Rate system effective , prohibiting banks from lending below the Base Rate except for a narrow set…

2. 1 April 2016

   Existing loans priced on the BPLR were permitted to run until maturity, so the two systems coexisted for years; the RBI later moved to the Marginal Cost of F…

3. 1 October 2019

   Existing loans priced on the BPLR were permitted to run until maturity, so the two systems coexisted for years; the RBI later moved to the Marginal Cost of F…

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Example

In October 2009, the Reserve Bank of India's Deepak Mohanty Working Group reported that nearly 70 per cent of bank lending occurred below the declared BPLR, prompting the RBI to replace it with the Base Rate from 1 July 2010.

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