The Reserve Bank of India (RBI) has introduced from April 1, 2016, a new methodology of setting lending rate by commercial banks and will replace the existing method identify the new methodology.

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1. In April 2016 the Reserve Bank of India implemented a new lending-rate framework called the Marginal Cost of Funds based Lending Rate (MCLR).

2. MCLR is designed to link lending rates more directly to a bank's current marginal cost of funds so that changes in policy rates transmit faster to borrowers.

3. In simple form the pricing principle under MCLR can be written as: $	ext{Lending rate} = 	ext{Marginal cost of funds} + 	ext{tenor premium/spread}$, where the marginal cost reflects current deposit and borrowing costs and the tenor premium reflects loan maturity specifics.

4. The methodology requires banks to compute and publish MCLR curves (for different tenors) and to reset many loan rates more frequently, improving transparency and interest-rate transmission.

Therefore the correct new methodology introduced from April 1, 2016 is MCLR (option b).

FINAL_ANSWER: b

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