home page

click here



Daily Rates

Daily News

Book Store





click here

  credit policy   overview | coop banks | basics | lending |adv banking | products | IT & banking  
daily news | banking software| bank directory| internet banking| IT directory| Banknet Jobs

Main Page of Mid-Term Review of the Annual Policy Statement for 2007-08 click here

Highlights of Mid-Term Review of the Annual Policy Statement for 2007-08

Bank Rate, Repo Rate and Reverse Repo Rate kept unchanged.

The flexibility to conduct overnight repo or longer term repo including the right to accept or reject tender(s) under the LAF, wholly or partially, is retained.

CRR increased by 50 basis points to 7.5 per cent effective fortnight beginning November 10, 2007.

GDP growth forecast retained at 8.5 per cent during 2007-08, assuming no further escalation in international crude prices and barring domestic or external shocks

Inflation to be contained close to 5.0 per cent during 2007-08 while resolving to condition expectations in the range of 4.0-4.5 per cent, with a medium-term objective of inflation at around 3.0 per cent.

Moderating net capital flows so that money supply is not persistently out of alignment with indicative projection of 17.0-17.5 per cent.

Covering of ‘Short-sale’ and ‘When Issued’ transactions to be permitted outside the Negotiated Dealing System – Order Matching (NDS-OM) system.

Systemically important non-deposit taking NBFCs (NBFC-ND-SI) to be considered as ‘qualified entities’ for accessing the NDS-OM using the Constituents’ Subsidiary General Ledger (CSGL) route.

Reinstatement of the eligible limits under the past performance route for hedging facility to be permitted.

Oil companies to be permitted to hedge foreign exchange exposures by using overseas over-the-counter (OTC)/ exchange traded derivatives up to a maximum of one year forward.

Importers and exporters having foreign currency exposures to be allowed to write covered call and put options in both foreign currency/ rupee and cross currency and receive premia.

Authorised Dealers (ADs) to be permitted to run cross currency options books subject to the Reserve Bank’s approval.

ADs to be permitted to offer American options as well.

Working Group to be constituted for preparing a road-map for migration to core banking solutions (CBS) by Regional Rural Banks (RRBs).

RRBs and State/ Central Cooperative Banks to disclose their capital-to-risk weighted assets ratio (CRAR) as on March 31, 2008 in their balance sheets.

A road-map to be evolved for achieving the desired level of CRAR by these banks.M

High Level Committee to be constituted to review the Lead Bank Scheme.

Financial assistance to RRBs for implementing information and communication technology (ICT) based solutions.

Working group to be constituted to lay down the road-map for cross-border supervision and supervisory cooperation with overseas regulators, consistent with the framework envisaged in the Basel Committee on Banking Supervision (BCBS).

Besides general market risk, specific risk, especially the credit risk arising out of deficient documentation or settlement risk to be covered under the supervisory process.

Action plan to be drawn up for implementation of National Electronic Clearing Service (NECS) with centralised clearing and settlement at Mumbai.

Web banknetindia.com

Advertise | Book Store | About us | Contact us | Terms of use | Disclaimer

© Banknet India | All rights reserved worldwide.
Best viewed with IE 4.00 & above at a screen resolution of 800 x 600 or higher