Monetary and Credit Policy: Highlights

By Our Banking Bureau | 29 Apr 2002

1
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.

 


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