State Bank of India is set to adopt the repo rate as its external benchmark for all floating rate loans today.

The bank said on September 23 that it would adopt a repo rate-linked mechanism for faster transmission of policy rates as per Reserve Bank of India’s mandate.

In a September 4 circular, RBI said, it is mandatory for banks to link all new floating rate personal or retail loans and floating rate loans to MSMEs to an external benchmark effective today.