|
|
Credit Policy highlights
The following are the highlights of the Reserve Bank of India's Monetary and Credit Policy for the first half of the fiscal 2001-02.
- RBI bars co-operative banks from lending against stocks.
- RBI sees current year GDP growth at 6-6.5%.
- Revised guidelines on exposure of banks to stock markets to be effective May 2001 after further consultations.
- CRR made more flexible, interest on CRR balance increased.
- Bank Rate left unchanged.
- Prudential measures to strengthen urban co-operative banks.
- Guidelines on banks' exposure to stocks in May.
- RBI hints at easier monetary stance.
- RBI says prefers soft interest rates.
- Slowdown in services sector has hit economy: RBI.
- Automatic route opens for FDI in NBFCs.
- PLR norms liberalised.
- Measures to reduce interest rates on export credit by 1 to 1.5 percentage points and rationalise export credit refinance.
- The macro-economic, monetary and price situations and external sector developments remained by and large favourable in 2000-01 despite the lower performance of industry and some adverse developments in certain segments of financial market.
- Banks allowed to offer higher interest on deposits held by senior citizens.
- RBI to streamline its role by divesting ownership in financial institutions.
- RBI favours separate apex supervisory body for co-operative banks.
- Steps being taken to set a stage for separation of debt management function from RBI.
- RBI to provide adequate liquidity to meet credit growth and support revival of investment demand.
- RBI expects the present stable interest rate environment to continue and announces a preference for further softening during the year.
- Steps to move forward to the next stage of Liquidity Adjustment facility: Wide-ranging package of measures, including back-stop facility to banks and primary dealers.
Powered by
YOU MAY ALSO WANT TO SEE:
Monetary & Credit Policy 2001-2002 (First Half)
The Rediff-Business Standard Special
Money
Business News
Tell us what you think of this report
|