CII for 50 bpt reduction in bank rate
By Our Banking Bureau | 26 Apr 2002
In its suggestions for the Slack Season Credit Policy 2002-03, CII said the policy should focus on two principle objectives - first should be to effect liquidity in the short term via the traditional tools of the monetary policy and the second should be to usher in deeper structural reforms in the financial system.
Besides seeking reduction in bank rate, CII further suggested a slew of measures to increase liquidity and reduce volatility in the markets, including formulation of a roadmap to reduce the requirement of maintenance of CRR from the current level of 5.5 per cent of net demand and time liabilities (NDTL) to 3 per cent of NDTL.
CII said the credit policy should bring about a reduction of SLR from the current level of 25 per cent of NDTL to 15 per cent of NDTL.