(Answered) Whst is the difference between base rate and MCLRWhst is the difference between base rate and MCLR

➤ Why do base rate and MCLR differ?
They differ because they use different cost measures and reset rules. Base rate uses a bank’s historical average cost of funds, while MCLR uses the marginal cost of new funds. MCLR also includes tenor premiums and scheduled resets, so it responds more quickly to changes in market rates and monetary policy than the base-rate framework.