Mid-Term Review of the Annual Policy Statement for 2008-09, RBI Credit Policy, Reserve Bank of India: Banknet India

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Mid-Term Review of the Annual Policy Statement for 2008-09

Part B. Mid-term Review of Annual Statement on Developmental and Regulatory Policies for the Year 2008-09

I. Interest Rate Policy

Interest Rates on FCNR(B) and NR(E)RA Deposits

128. Recent global developments brought some pressure to bear on the domestic money and foreign exchange markets in conjunction with temporary local factors. In response, the Reserve Bank increased the interest rate ceiling on FCNR(B) deposits by 50 basis points, i.e., to Libor/Swap rates minus 25 basis points and the interest rate ceiling on NR(E)RA deposits by 50 basis points, i.e., to Libor/Swap rates plus 50 basis points effective from the close of business on September 16, 2008. These ceilings were increased further by 50 basis point each, i.e., Libor/Swap rates plus 25 basis points and Libor/Swap rates plus 100 basis points, respectively, with effect from the close of business on October 15, 2008.

II. Financial Markets... Click Here For Full Text

III. Credit Delivery Mechanism and Other Banking Services... Click Here For Full Text

IV. Prudential Measures... Click Here For Full Text

V. Institutional Developments... Click Here For Full Text

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