Appendix Table I.1: Monetary and Credit Policy Measures - RBI - 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. |
|