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What will be the frequency of benchmark reset for floating rate Home/ Mortgage Loans?

As per Master Direction - RBI (Interest Rate on Advances) Directions, 2016, the interest rate under external benchmark shall be reset at least once in three months. Thus, the Repo Rate component of the Interest Rate will be reset on the first day of the third subsequent month from the month in which the Facility is first disbursed (irrespective of the date of disbursement) and every three months thereafter, as a sum of Repo Rate + “Spread”, plus applicable statutory levy, if any. The applicable Repo Rate shall be the rate prevailing one business day preceding the reset date.

Illustration: For first disbursements made in the month of Oct 2019, the first reset date will be Jan 01, 2020 and thereafter on Apr 01, 2020 and so on.