April 27, 2000
CREDIT POLICY 2000
EXIM POLICY 2000
Y2K: BIZ FEATURES
INDIA & THE WTO
BIZ IN THE USA
CARS & MOBIKES
Highlights of Monetary and Credit Policy
No fresh changes in bank rate, CRR.
Minimum daily CRR balances requirement cut to 65%.
Banks given freedom to fix interest rates.
Focus on making debt and money markets efficient.
GDP growth put at 6.5%-7% for 2000-2001.
Inflation rate estimated at 4.5%.
Money supply (M3) growth projected at 15%.
Non-food credit growth projected to grow at 16%.
"Bank rate, repo rate, rate on savings accounts not too out of line with ruling
international rates," says Bimal Jalan
Liquidity Adjustment Facility to replace Interim Liquidity
Adjustment Facility. The LAF will include repo auctions and reverse repo auctions, cementing the RBI's position as the lender of last resort.
No change in the export credit refinance scheme.
Minimum maturity of Certificates of Deposits cut to 15 days.
Scheme for banks, PDs: automatic invocation by the SGL Account holder of undrawn refinance/liquidity support from RBI.
Sale of securities allotted in primary issues on the same day.
Fresh guidelines for capital adequacy standards for PDs being evolved.
Clearing corporation for money and debt securities.
Banks will be required to obtain prior approval of RBI for entering insurance.
Banks to have freedom to offer all loans on fixed or floating rates.
Banks to have option to choose current swap rates while offering FCNR (B) deposits.
RBI to continue its current policy of providing sufficient credit for growth while guarding against inflationary pressures.
CRR may be cut as when required.
Current account deficit expected to be below two per cent of GDP in 2000-2001.
Foreign exchange reserves up to $5.55 billion in 1999-00.
Banks can undertake insurance business only through joint ventures on risk participation bais. Only banks with minimum net worth of Rs 5 billion can take up insurance ventures.
RBI keen to promote self-regulation among small NBFCs and further improve disclosure requirements.
Scope of participation in the repo market widened.
Day of payment in respect of 14 and 91-day treasury bills' auction changed from Saturday to the next working day.
Drought affected areas to be provided maximum support for conversion of short-term production loans into mid-term loans.
Financial institutions given flexibility in fixing interest rates on term deposits.
Composite loan limit for small scale industries increased from Rs 500,000 to Rs 1 million.
Facility to non-bank entities for routing transaction through PDs extended till December 31, 2000.
Banks allowed to lend gold to other nominated banks.
Banks asked to consolidate capital adequacy.
In-principle nod to universal banking.
RBI to consider giving financial institutions flexibility to raise funds, subject to overall limits on the net-owned funds.
Banks told to boost balance-sheets.
RBI hints at move towards international risk-based supervision.
Underwriting commission for treasury bills withdrawn.
RBI reviewing capital adequacy ration of PDs.
Draft guidelines on CP and non-SLR bonds announced.
Pure inter-bank market to be operational by end-December 2000.
RBI Governor Bimal Jalan's policy statement
RBI's Credit and Monetary Policy 2000-2001
RBI's Credit and Monetary Policy 1999-2000
RBI's Credit and Monetary Policy 1998-1999