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click here to return to main page of Mid-term Review of Annual Policy for the year 2004-05
Highlights of Mid-term Review of Annual Policy for the year 2004-05
Financial Sector Reforms and Monetary Policy Measures
Bank Rate kept unchanged at 6.0 per cent.
Repo Rate increased by 25 basis points to 4.75 per cent.
Revised Liquidity Adjustment Facility to operate with overnight fixed rate repo and reverse repo.
Ceiling on Interest Rates on NRE Deposits raised by 50 basis points over US dollar LIBOR/SWAP rates of corresponding maturities.
Banks may fix the ceiling on interest rates on FCNR(B) deposits on monthly basis.
Minimum tenor of retail domestic term deposits reduced to 7 days.
Limit on advances under priority sector enhanced for improving credit delivery to the agriculture sector.
Restrictive provisions of service area approach to be dispensed with except for government sponsored programme.
Banks to increase their disbursements to small and marginal farmers under special agricultural credit plans (SACP) by March 2007.
Private sector banks are urged to formulate SACPs from the year 2005-06, targeting an annual growth rate of at least 20-25 per cent.
Composite loan limit for SSI entrepreneurs enhanced from Rs.50 lakh to Rs.1 crore.
Investment by banks in securitised assets pertaining to SSI sector be treated under priority sector.
Banks may now extend direct finance to housing sector up to Rs.15 lakh under priority sector lending.
Banks may finance distressed urban poor to prepay their debt to non-institutional lenders.
IBA to look into the suggestions made by NCAER for the Kisan Credit Card scheme and take remedial action.
RIDF X has been established with a corpus of Rs.8,000 crore (as announced in the Union Budget for 2004-05).
Report of the Special Group on Debt Restructuring Mechanism for Medium Enterprises be placed in public domain.
RBI has constituted Empowered Committees to focus on operational issues related to better functioning of Regional Rural Banks and to provide clarifications on regulatory issues.
Report of the Task Force for reviving the rural co-operative banking institutions is expected shortly.
Banks are urged to keep up the momentum of lending to agriculture.
Bank finance to NBFCs for second hand assets.
Many banks announced gold card scheme for exporters.
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