Second Quarter Review of Monetary Policy 2010-11
-Announced on the 2nd November 2010
Developmental and Regulatory Policies
II. Interest Rate Policy
64. As indicated in the Monetary Policy Statement of April 2010, the system of Base Rate came into effect on July 1, 2010. The transition from the benchmark prime lending rate (BPLR) system to the base rate system has been smooth.
Deregulation of Interest Rate on Savings Bank Deposits
65. As a part of financial sector reforms, the Reserve Bank has deregulated interest rates on deposits, other than savings bank deposits. The interest rate on savings bank deposits has remained unchanged at 3.5 per cent per annum since March 1, 2003. Keeping in view progressive deregulation of interest rates, it is proposed:
to prepare a discussion paper, which will delineate the pros and cons of deregulating the savings bank deposits interest rate.
66. The discussion paper will be placed on the Reserve Bank’s website by end-December 2010 for feedback from the general public.
Second Quarter Review of Monetary Policy 2010-11 ... click here
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RBI CREDIT AND MONETARY POLICIES (1999-2011)... click here