On Monday, the private sector lender ICICI Bank cut MCLR by 5 basis points across tenure just 2 days ahead of the RBI's MPC meet.

As per the lender's website, the rate has been slashed for the overnight, one-month, three-month, six-month and one-year tenors by five basis points (bps) to 8.50%, 8.50%, 8.55%, 8.70% and 8.75% respectively, according to the lender's website.

In December 2018 ICICI Bank last cut its MCLR on one-month, three-month and six-month tenors by 10 bps each to 8.55%, 8.60% and 8.75%, respectively.

Also, the RBI proposed that loans be benchmarked to external benchmark such as the repo rate or the 91-day or 182-day treasury bill instead of the MCLR. And the move has come into effect from April 1, 2019.

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