Credit Control and Other Measures

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شائع کیا گیا پر جون 07, 2001

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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
Interest Rates on Advances from Reserve Bank
and Penal Rates which are at present
Linked to the Bank Rate


Sr.	Advances to	Existing Rates	New Rates
No.			(Effective close
			of business on
			March 1, 2001)
		Per cent per annum
1.	Scheduled Commercial Banks
	i) Export Credit Refinance Facility	Bank Rate (7.5)	Bank Rate (7.0)

	ii) Collateralised Lending Facility (CLF)
	Block I	Bank Rate (7.5)	Bank Rate (7.0)
	(First 2 weeks)

	Block II	Bank Rate plus	Bank Rate plus
	(From 3^rd week onwards)	2.0 percentage points	2.0 percentage points
		(9.5)	(9.0)

2.	State Co-operative Banks (SCBs)

	Towards general banking business such	Bank Rate (7.5)	Bank Rate (7.0)
	as clearing adjustments, Liquidity, etc.

3.	NABARD

	General Line of Credit (GLC)
	i) GLC I
	To provide Refinance in respect of loans	Bank Rate minus 1.5	Bank Rate minus 1.0
	and advances for the purposes of	percentage points (6.0)	percentage point (6.0)
	seasonal agricultural operations (SAO)
	made by SCBs and Regional Rural
	Banks (RRBs)

	ii) GLC II
	To provide refinance to SCBs, RRBs	Bank Rate minus 1.0	Bank Rate minus 0.5
	and commercial banks for refinancing	percentage points (6.5)	percentage point (6.5)
	Weavers' Co-op. society and for other
	approved short term purposes

4.	Primary (Urban) Co-operative Banks

	i) Export Credit Refinance Facility	Bank Rate (7.5)	Bank Rate (7.0)
	ii) For SSI	Bank Rate (7.5)	Bank Rate (7.0)

5.	SIDBI [From NIC(LTO) Fund out of	Bank Rate (7.5)	Bank Rate (7.0)
	the loan repayment made by IDBI]

6.	Primary Dealers (PDs)

	To enable PDs to effectively fulfill their
	obligations,the RBI is extending
	liquidity support to them against the
	security of holdings in Subsidiary
	General Ledger (SGL) Accounts
	Level I	Bank Rate (7.5)	Bank Rate (7.0)

7.	State Financial Corporations	Bank Rate (7.5)	Bank Rate (7.0)

8.	Government of India

	a) Shortfalls in minimum balances	Bank Rate (7.5)	Bank Rate (7.0)

	b) Ways and Means Advances	Bank Rate (7.5)	Bank Rate (7.0)

	c) Overdraft	Bank Rate plus 2.0	Bank Rate plus 2.0
		percentage points (9.5)	percentage points (9.0)

9.	State Governments

	a) Shortfalls in minimum balances	Bank Rate (7.5)	Bank Rate (7.0)
	b) Ways and Means Advances	Bank Rate (7.5)	Bank Rate (7.0)
	c) Overdraft	Bank Rate plus 2.0	Bank Rate plus 2.0
		percentage points (9.5)	percentage points (9.0)

10.	Penal Interest Rates on shortfalls in	Bank Rate plus 3.0	Bank Rate plus 3.0
	reserve requirements depending on	percentage points (10.5)	percentage points (10.0)
	duration of shortfalls	or Bank Rate plus 5.0	or Bank Rate plus 5.0
		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.