Mumbai: The highlights of the Monetary and Credit Policy 2002-03:
- Growth rate in 2002-03 projected at 6.0 to 6.5 per cent. Inflation to remain low.
- Monetary conditions and liquidity position highly comfortable.
- The RBI to provide adequate liquidity to meet credit growth and support investment demand.
- Soft interest rate regime to continue and greater flexibility to interest rate structure in the medium term.
- Further cut in CRR by 50 basis points.
- Bank Rate may be cut by up to 50 basis points depending on monetary developments - no timing fixed yet.
- No change in interest rate on savings account.
- Interest rate on export credit in foreign currency lowered.
- Abolition of minimum lending rate for cooperative banks.
- Banks to declare maximum and minimum lending rates.
- Banks should provide information on deposit rates on various maturities and effective annualised return to depositors.
- Facilities for small-scale industries liberalised.
- Further measures to improve credit delivery mechanism to the priority sector.
- Measures to improve flow of credit to the housing sector.
- Further measures to develop the government securities market.
- Access to call money market to be regulated.
- CDs to be issued in demat form.
- More prudential measures to bring financial stability.
- Measures to improve technology - EFT facilities to be expanded.
- Real Time Gross Settlement System to be ready for testing in a years time.
- Submission of returns by NBFCs - the RBI to penalise delays.