Rediff Logo
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Weather | Wedding | Women
Partner Channels: Auctions | Auto | Bill Pay | IT Education | Jobs | Lifestyle | Technology | Travel
Home > Money > Business Headlines > Report
April 19, 2001
  Money Matters

 -  Business Special
 -  Business Headlines
 -  Corporate Headlines
 -  Columns
 -  IPO Center
 -  Message Boards
 -  Mutual Funds
 -  Personal Finance
 -  Stocks
 -  Tutorials
 -  Search rediff


 Search the Internet
 Sites: Finance, Investment
E-Mail this report to a friend
Print this page

Credit Policy highlights

Click here for bigger picture: RBI Governor Bimal Jalan. Photo: Jewella MirandaThe 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

Monetary & Credit Policy 2001-2002 (First Half)
The Rediff-Business Standard Special


Business News

Tell us what you think of this report