Annual Monetary and Credit Policy for the year 2004-2005
Monetary Policy Measures- PAGE 1
1. Bank Rate kept stable at 6.0 per cent.
2. Repo Rate unchanged at 4.5 per cent.
3. Revised LAF scheme operationalised.
4. The entire export credit refinance was made available at reverse repo rate.
5. Almost all banks have adopted the new system of BPLR and the rates are lower from their earlier PLRs.
6. Banks are encouraged to align the pricing of credit to assessment of credit risk to improve credit delivery and credit culture.
7. RBI accepted some recommendations of the interim Report of Vyas Committee for implementation, e.g., loans for storage facilities under priority sector, securitised agricultural loans as priority sector lending, waiving margin/security requirements for certain agricultural loans up to a limit, NPA norms for crops loans aligned to crop seasons.
8 Development of mechanism for debt restructuring for medium enterprises on the lines of corporate debt restructuring.
9. Definition of infrastrucutre lending broadened.
10. Working Group constituted on Credit Enhancement by State Governments for financing infrastructure.
11. A Gold Card Scheme for creditworthy exporters drawn up.
12. Various restructuring options being considered by the Government and other stakeholders for rationalising the structure of RRBs - Vyas Committee is also looking into restructuring of RRBs.
13. Limit on the lending of non-bank participants in the call/notice money market reduced to 45 percent effective June 26, 2004.
14. Automated value-free transfer of securities proposed between market participants and the CCIL under CBLO.
15. RBI constituted Working Group to review the performance of negotiated dealing system (NDS).