The document outlines new guidelines issued by the Reserve Bank of India regarding banks switching to a Base Rate system for determining lending rates, replacing the existing Benchmark Prime Lending Rate system. Key points: 1) Banks must switch to calculating an interest Base Rate that includes common cost elements, and may set actual lending rates by adding customer-specific charges. 2) The Base Rate will be the minimum rate for all loans. It will be reviewed quarterly and must be publicly displayed. 3) The new system takes effect on July 1, 2010 and will apply to new and renewing loans. Existing loans may continue at prior rates until maturity.