October 29, 1999
CREDIT POLICY
GOVT & ECONOMY
COMMENTARY
INTERVIEWS
BUDGET
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Highlights of the second half
- 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- 30 per cent import finance surcharge withdrawn.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- Incremental CRR of 10 per cent on FCNR(B) withdrawn from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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