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October 29, 1999

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Highlights of the second half

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  • Bank rates unchanged.
  • CRR cut to 9 per cent.
  • Gross fiscal deficit in the first five months at 60.2 per cent of budget estimates.
  • CRR to increase banks lendable resources by Rs 70 billion.
  • CRR cut to effected in two stages -- November 6 and November 20, 1999.
  • Banks can charge rates without reference to PLR.
  • RBI sees GDP growth at 6-6.5 per cent.
  • 30 per cent import finance surcharge withdrawn.
  • M3 growth of 15.5 -16 per cent in April "appears reasonable".
  • Withdraws incremental CRR of 10 per cent on FCNR(B) from November 6, 1999.
  • RBI permits Indian banks to offer cheque writing facility to gilt funds.
  • To include banks' cash-in-hand for CRR compliance for two months from December 1, 1999 to January 31, 2000.
  • Minimum maturity for FCNR(B) raised from six months to one year.
  • Incremental CRR of 10 per cent on FCNR(B) withdrawn from November 6, 1999.
  • RBI says fiscal situation does not "augur well for future".
  • Net government borrowing Rs 579.77 billion until October 26, gross borrowings at Rs 726.3 billion.
  • Money market, mutual funds to be set up only as trusts.
  • RBI expects current account deficit below 2 per cent despite increase in oil prices.
  • RBI to continue buying T-bills "when considered necessary".
  • Wholesale Price Index inflation for 1999-2000 likely to be below last year's 4.8 per cent.
  • RBI says there should be no difficulty in meeting liquidity needs of various sectors.

ALSO SEE

RBI Governor Bimal Jalan's policy statement

RBI's Credit and Monetary Policy 1999-2000

RBI's Credit and Monetary Policy 1998-1999

Business

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