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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (9123)	10/29/1999 9:04:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Monetary Policy: CRR cut to 9 pc,interest rates untouched -30 pc surcharge on import finance withdrawn The Reserve Bank of India, the country's central bank, on Friday announced a series of measures to release extra liquidity into the banking system to help finance the government's over-sized fiscal deficit and meet credit demand from industry as the economy picks up. The two-phase one percentage cut in Cash Reserve Ratio or CRR to nine per cent, withdrawal of 30 per cent surcharge on import finance, withdrawal of minimum 20 per cent interest on overdue export bills and withdrawal of ten per cent liabilities on the FCNR (B) scheme were among the major policy changes announced by the RBI. (CRR = the fortnightly cash balances maintained by commercial banks with the central bank)) The RBI has left untouched the bank rate at eight per cent and interest rates of commercial banks. The first cut of 0.5 per cent or 50 basis points in CRR will be effective from November 6. The second, identical cut will be effective from November 20. Unveiling the policy statement on 'Mid-term Review of Monetary and Credit policy for the Year 1999-2000' in Bombay, the Reserve Bank proposed to infuse a huge sum of Rs 80.61 billion lendable resources into the banking system through the CRR cut and withdrawal of FCNR (B) liabilities...... 216.32.165.70