Banks have been making quite a tidious effort in attracting customers towards base rate; be it by showing the positive features of base rate or repulsing them from BPLR. Recently, many banks had raised their benchmark prime lending rates (BPLR) in a move to push customers towards base rate.

The move has however received only luke warm response from borrowers.

According to Arun Kaul, executive director(ED), Central Bank of India, the hike in PLR has been only to draw borrowers towards base rate.

KR Kamath, chairman and managing director, Punjab National Bank said, "Though we have hiked our PLR by a 75 basis points, borrowers don't have to pay any extra if they decide to shift to the base rate system.''

"Customers are yet to be aware of the advantages of the new system and it may take time to understand it,'' said a senior official of the bank.It is too early to see any trend among the customers' behaviour, said Kamath.