The MCLR represents the minimum rate at which a bank can lend money and is a crucial factor in determining loan interest rates. This adjustment by SBI is significant as it reflects changes in the cost of funds and overall market conditions. 

 The Reserve Bank of India (RBI) implemented the MCLR system in April 2016, replacing the base rate system to enhance transparency in the interest rate-setting process. This system aims to ensure that the benefits of reduced lending rates are passed on to borrowers more effectively.