With the Reserve Bank of India coming down heavily on commercial banks for discriminating existing customers, banks offering home loans at teaser rates are planning to withdraw the same in the coming month.

The Reserve Bank of India has scraped the present PLR system and introduced base rate with effect from 1 April 2010. The new set of guidelines governing the base rate was released by the central bank.

The Reserve Bank of India raised Cash Reserve Ratio (CRR) by 75 basic points, while the market expectation had been 50 bps. The central bank has left the interest rates untouched.

The central bank’s eagerly awaited policy review scheduled for tomorrow has managed to pull the markets down for the sixth session in a row. The steady slide was broken today with a commendable jump amidst optimism.