When Citi Bank announced its third-party benchmark home loan product, we went through a similar exercise. But can’t third-party rates be gamed? Ideally, there should be one third-party rate that all banks peg their rates to and which cannot be manipulated. They can offer higher or lower spreads—of the difference between the benchmark rate and the offered rate to the borrower. The Nirav Modi story is telling retail banking consumers that the rules are only meant for us, the retail consumers.

Source: Mint March 13, 2018 12:11 UTC