Credit Control and Other Measures - આરબીઆઈ - Reserve Bank of India
Credit Control and Other Measures
Selected circulars issued by the Reserve Bank of India during March 2001 are reproduced below.
Ref. No. MPD. BC. 205/07.01.279/2000-01 dated
March 1, 2001
All Scheduled Commercial Banks
Bank Rate
It has been decided that with effect from the close of business today (March 01, 2001), the Bank Rate will be reduced by one half of one percentage point from '7.5 per cent per annum' to '7.0 per cent per annum'.
2. All interest rates on advances from the Reserve bank as also the penal rates on shortfall in reserve requirements which are specifically linked to the Bank Rate stand revised as indicated in the Annexure.
Annexure |
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Interest Rates on Advances from Reserve Bank |
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and Penal Rates which are at present |
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Linked to the Bank Rate |
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Sr. |
Advances to |
Existing Rates |
New Rates |
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No. |
(Effective close |
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of business on |
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March 1, 2001) |
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Per cent per annum |
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1. |
Scheduled Commercial Banks |
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i) Export Credit Refinance Facility |
Bank Rate (7.5) |
Bank Rate (7.0) |
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ii) Collateralised Lending Facility (CLF) |
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Block I |
Bank Rate (7.5) |
Bank Rate (7.0) |
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(First 2 weeks) |
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Block II |
Bank Rate plus |
Bank Rate plus |
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(From 3rd week onwards) |
2.0 percentage points |
2.0 percentage points |
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(9.5) |
(9.0) |
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2. |
State Co-operative Banks (SCBs) |
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Towards general banking business such |
Bank Rate (7.5) |
Bank Rate (7.0) |
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as clearing adjustments, Liquidity, etc. |
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3. |
NABARD |
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General Line of Credit (GLC) |
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i) GLC I |
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To provide Refinance in respect of loans |
Bank Rate minus 1.5 |
Bank Rate minus 1.0 |
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and advances for the purposes of |
percentage points (6.0) |
percentage point (6.0) |
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seasonal agricultural operations (SAO) |
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made by SCBs and Regional Rural |
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Banks (RRBs) |
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ii) GLC II |
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To provide refinance to SCBs, RRBs |
Bank Rate minus 1.0 |
Bank Rate minus 0.5 |
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and commercial banks for refinancing |
percentage points (6.5) |
percentage point (6.5) |
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Weavers' Co-op. society and for other |
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approved short term purposes |
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4. |
Primary (Urban) Co-operative Banks |
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i) Export Credit Refinance Facility |
Bank Rate (7.5) |
Bank Rate (7.0) |
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ii) For SSI |
Bank Rate (7.5) |
Bank Rate (7.0) |
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5. |
SIDBI [From NIC(LTO) Fund out of |
Bank Rate (7.5) |
Bank Rate (7.0) |
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the loan repayment made by IDBI] |
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6. |
Primary Dealers (PDs) |
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To enable PDs to effectively fulfill their |
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obligations,the RBI is extending |
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liquidity support to them against the |
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security of holdings in Subsidiary |
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General Ledger (SGL) Accounts |
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Level I |
Bank Rate (7.5) |
Bank Rate (7.0) |
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7. |
State Financial Corporations |
Bank Rate (7.5) |
Bank Rate (7.0) |
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8. |
Government of India |
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a) Shortfalls in minimum balances |
Bank Rate (7.5) |
Bank Rate (7.0) |
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b) Ways and Means Advances |
Bank Rate (7.5) |
Bank Rate (7.0) |
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c) Overdraft |
Bank Rate plus 2.0 |
Bank Rate plus 2.0 |
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percentage points (9.5) |
percentage points (9.0) |
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9. |
State Governments |
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a) Shortfalls in minimum balances |
Bank Rate (7.5) |
Bank Rate (7.0) |
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b) Ways and Means Advances |
Bank Rate (7.5) |
Bank Rate (7.0) |
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c) Overdraft |
Bank Rate plus 2.0 |
Bank Rate plus 2.0 |
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percentage points (9.5) |
percentage points (9.0) |
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10. |
Penal Interest Rates on shortfalls in |
Bank Rate plus 3.0 |
Bank Rate plus 3.0 |
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reserve requirements depending on |
percentage points (10.5) |
percentage points (10.0) |
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duration of shortfalls |
or Bank Rate plus 5.0 |
or Bank Rate plus 5.0 |
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percentage points (12.5) |
percentage points (12.0) |
Ref. No. PCB. DS. 34/13.01.00/2000-2001 dated
March 8, 2001
All Primary Co-operative Banks
Customer Service - Disposal of deposits on maturity - Intimation to impending due date of the deposit in Advance to customers/depositors
Please refer to our Circular UBD.No.POT.19/UB38/ 92-93 dated October 6, 1992 regarding implementation of Goiporia Committee recommendations on customer service in banks. Banks were advised, inter-alia, therein regarding inclusion in the term deposit application form, a direction for disposal of deposits on maturity (c.f. recommendation No. 3.21).
2. On the suggestion of the Regulation Review Authority constituted in RBI, we reiterate that banks should ensure sending of intimation of impending due date of deposit well in advance to their depositors as a rule in order to extend better customer service.