While starting the steps to replace the existing system BPLR, RBI feels that the existing credit system rate had lost its relevance and effectively inhibit the transmission of monetary policy signals. For example, the RBI reduced the loan interest rate by 425 basis points in the past year, but the banks to reduce their BPLR by about 200 basis points cut. This is mainly because most of the loans they are under their BPLR. Although, the rate of prime (read BPLR) Indian banks ranged between 11 percent and 15.75 percent, but three-quarters of their total loans made under this level due to competitive pressures in the banking sector is fragmented and everything will be stable as in the past, and finally they live in peace for ever, very touching.