Appendix Table I.1: Monetary and Credit Policy Measures - ଆରବିଆଇ - Reserve Bank of India
Appendix Table I.1: Monetary and Credit Policy Measures
| | | |
Sr. | Items | Measures | Effective Date |
No. | | | |
1 | 2 | 3 | 4 |
1. | Interest Rates | | |
a. | Bank Rate | Reduced from 8 per cent to 7 per cent. | April 2, 2000 |
Raised to 8 per cent. | July 22, 2000 | ||
b. | Fixed Rate Repos | Reduced from 6 per cent to 5 per cent. | April 3, 2000 |
Replaced by Variable Rate Repo. | June 5, 2000 | ||
c. | Deposit Rates | Savings deposit rate on domestic and ordinary | April 3, 2000 |
non-resident savings deposits as well as savings | |||
deposits under Non-resident (External) Accounts | |||
Scheme of scheduled commercial banks reduced | |||
from 4.5 per cent to 4.0 per cent. | |||
d. | Non-resident Deposit | Banks given the option to choose the current swap | April 27, 2000 |
Rates | rates while offering FCNR(B) deposits. | ||
Banks permitted to offer differential rates of | April 27, 2000 | ||
interest on NRE deposits on size-group basis on | |||
the lines of domestic term deposits. | |||
Banks permitted to offer differential rates of | April 27, 2000 | ||
interest on FCNR(B) deposits on size-group basis | |||
subject to the overall ceiling rate. | |||
e. | Lending Rates | Board of Directors of banks allowed to delegate | April 24, 1999 |
powers to ALM Committee to fix interest rates | |||
on advances. | |||
Banks allowed to operate different PLRs for | April 24, 1999 | ||
different maturities. | |||
Banks allowed to offer fixed rate term loans | April 24, 1999 | ||
subject to conformity to ALM guide lines. | |||
The rates of interest on the foreign currency | August 16, 1999 | ||
export credits which were to be fixed with | |||
reference to ruling LIBOR were also permitted | |||
to be fixed with reference to EUROLIBOR/ | |||
EURIBOR, wherever applicable. | |||
Freedom to banks to charge interest rates without | October 29, 1999 | ||
reference to PLR, in respect of i) loans covered | |||
by refinancing schemes of term lending | |||
institutions; ii) lending to intermediary agencies; | |||
and iii) discount of bills with a view to | |||
encouraging bills culture. | |||
Withdrawal of the interest rate surcharge of 30 | October 29, 1999 | ||
per cent on import finance, in force since January | |||
1998. | |||
Withdrawal of the prescribed minimum interest | October 29, 1999 | ||
rate of 20 per cent per annum on overdue export | |||
bills. | |||
Banks permitted to offer all loans on fixed or | April 27, 2000 | ||
floating rate basis provided PLR stipulations as | |||
applicable are complied with. | |||
An interest rate surcharge at 50 per cent levied | May 26, 2000 | ||
on bank credit for imports as a temporary measure. | |||
The interest rate applicable for overdue export bills | May 26, 2000 | ||
in case of export credit not otherwise specified | |||
(ECNOS) at post shipment stage prescribed at 25 | |||
per cent per annum (minimum). | |||
f. | Advances against | Banks allowed to charge suitable rates of interest | April 24, 1999 |
Domestic/NRE/ | on advances against domestic/ NRE term deposits | ||
FCNR(B) term deposits | without reference to the ceiling of the PLR in all | ||
cases where deposit rates are more than PLR. | |||
Freedom to banks to charge interest rates on loans | October 29, 1999 | ||
against domestic/NRE (irrespective of repayment | |||
of loan in foreign currency or Rupee)/FCNR(B) | |||
deposits to the depositors without reference to | |||
their own PLR. | |||
Banks permitted to charge interest at suitable rates | March 23, 2000 | ||
in case of advances up to Rs.2 lakh against third | |||
party deposits, as in case of advances to | |||
depositors against their own deposits. | |||
| | | |
2. | Reserve Requirements | | |
a. | Cash Reserve Ratio (CRR) | Reduced to 10.0 per cent. | May 8, 1999 |
Gold imported by authorised banks and lent to | July 31, 1999 | ||
jewellery exporters in India for exports exempt | |||
from CRR/SLR. | |||
Liabilities under gold deposits mobilised in India | October 5, 1999 | ||
exempt from CRR. | |||
Reduced to 9.5 per cent. | November 6, 1999 | ||
Incremental CRR of 10 per cent (over the level | November 6, 1999 | ||
as on April 11, 1997) on FCNR(B) deposits | |||
done away with. | |||
Reduced to 9.0 per cent. | November 20, 1999 | ||
Inclusion of 'cash in hand' with banks for | December 1, 1999 to | ||
calculation of CRR. | January 31, 2000 | ||
Reduced to 8.5 per cent. | April 8, 2000 | ||
Reduced to 8.0 per cent. | April 22, 2000 | ||
Borrowings of gold mobilized under the Gold | May 6, 2000 | ||
Deposit Scheme by authorised banks from other | |||
authorised banks treated as inter-bank liabilities | |||
and exempt from CRR. | |||
Minimum daily requirement of CRR balances | May 6, 2000 | ||
reduced from 85 per cent to 65 per cent. | |||
Raised to 8.25 per cent. | July 29, 2000 | ||
Raised to 8.50 per cent. | August 12, 2000 | ||
b. | Statutory | Remained unchanged at 25 per cent. | - |
Liquidity Ratio (SLR) | |||
| | | |
3. | Refinance | | |
a. | Rate of interest on | Increased from 7 per cent to 8 per cent. | April 1, 1999 |
Export Credit | |||
Refinance (ECR) | |||
Reduced to 7 per cent. | April 3, 2000 | ||
Raised to 8 per cent. | July 22, 2000 | ||
b. | Collateralised Lending | Replaced General Refinance Facility. Availment | April 21, 1999 |
Facility (CLF) | to banks limited to 0.25 per cent of the fortnightly | ||
average outstanding aggregate deposits in 1997- | |||
98 (i.e. Rs.1,314 crore) and for two weeks at the | |||
Bank Rate. Provision of an additional | |||
collateralised lending facility (ACLF), also of | |||
Rs.1,314 crore, at the Bank Rate plus two | |||
percentage points. Imposition of a penal rate of | |||
2 percentage points on CLF and ACLF availed | |||
for second block of two weeks. | |||
The stipulation of a two week cooling period at | October 6, 1999 | ||
the end of four weeks of availment of CLF/ACLF | |||
by banks was removed. | |||
c. | Liquidity Support | Tier-I liquidity support (constant throughout the | April 21, 1999 |
Facility (LSF) | year) against collateral of government securities, | ||
based on bidding commitment and other | |||
parameters, available to PDs at the Bank Rate | |||
for a period of 90 days. Provision of Tier-II | |||
liquidity support against collateral of government | |||
securities to PDs for periods not exceeding two | |||
weeks at a time at the Bank Rate plus 2 | |||
percentage points. | |||
d. | Special Liquidity | Introduced to enable banks to meet any | December 1, 1999 to |
Support Facility | unanticipated additional demand for liquidity in | January 31, 2000 | |
the context of the century date change. Provision | |||
of liquidity to the extent of banks' excess holdings | |||
of Central Government dated securities/Treasury | |||
Bills over the required SLR at an interest rate of | |||
2.5 percentage points over the Bank Rate. | |||
e. | Export Credit | Banks given the benefit of rediscounting export | May 6, 2000 |
Refinance Facility | bills with institutions like EXIM Bank and | ||
obtaining refinance from NABARD/EXIM | |||
Bank. | |||
f. | Liquidity Adjustment | The first stage of LAF introduced. ACLF to banks | June 5, 2000 |
Facility (LAF) | and Tier-II liquidity support to PDs replaced by | ||
variable rate reverse repo auctions. Fixed rate repo | |||
replaced by variable rate repo. | |||
Limits available to banks for all refinance | July 29, 2000 (Stage I) | ||
facilities (including those for CLF) reduced | August 12, 2000 (Stage II) | ||
temporarily to the extent of 50 per cent of eligible | |||
limits in two stages of 25 percentage points each. | |||
g. | Special Funds Facility | A special funds facility introduced for banks and | October 3, 2000 |
PDs to provide intra-day funds to facilitate | |||
settlement of securities transactions in case of | |||
| | gridlock. | |