New Delhi/IBNS: Leading Indian public-sector banks such as UCO Bank, Canara Bank and Bank of Baroda have increased their Marginal Cost of Funds-based Lending Rates (MCLR) in different tenures which will result in higher costs for consumer loans, reports said.

According to reports, MCLR is the minimum lending rate below which a bank is not allowed to lend to its customers.

This development comes after the Reserve Bank of India (RBI) decided to keep the benchmark interest rate at 6.50 percent.

The revised rates for Bank of Baroda and Canara Bank will take effect from Monday (August 12), while UCO Bank has hiked the lending rate for specific tenures, effective Saturday (August 10).

Earlier on Thursday (August 8), RBI's Monetary Policy Committee (MPC) kept the policy rates unchanged at 6.5 percent, maintaining the status quo.

The MPC of the central bank continued with the policy stance of ‘withdrawal of accommodation’ despite highlighting good economic growth and signs of easing inflation.

The standing deposit facility (SDF) rate remains at 6.25 percent, while the marginal standing facility (MSF) rate and the bank rate will be at 6.75 percent, as per reports.