Press Statement by Dr. D. Subbarao, Governor-Annual Policy Statement for the Year 2010-11- 20th April 2010
Developmental and Regulatory Policies
Let me now turn to development and regulatory issues. Over the last several years, the Reserve Bank has undertaken wide ranging financial sector reforms to improve financial intermediation and maintain financial stability. This process has now become more intensive with a focus on drawing appropriate lessons from the global financial crisis and putting in place a regulatory regime that is alert to possible build-up of financial imbalances. The Reserve Bank will further its efforts to improve the efficiency of the financial sector and financial markets while maintaining financial stability. Simultaneously, the Reserve Bank will vigorously pursue the financial inclusion agenda.
I will highlight a few actions we have taken or plan to take in these areas:
Publishing the Financial Stability Report on a half-yearly basis. The first report released on March 25, 2010 found that the overall risk to financial stability was limited.
Mandating banks to switch over to the system of Base Rate from July 1, 2010 to facilitate better pricing of loans, enhance transparency in lending rates and improve the assessment of monetary policy transmission.
Financial Market Products
Introducing Interest Rate Futures on 5-year and 2-year notional coupon bearing securities and 91-day Treasury Bills.
Permitting the recognised stock exchanges to introduce plain vanilla currency options on spot US Dollar/Rupee exchange rate for residents.
Introducing a reporting platform for secondary market transactions in CDs and CPs.
Setting up a Working Group to work out the modalities for an efficient, single-point reporting mechanism for all OTC interest rate and forex derivative transactions.
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Click Here For Annual Policy Statement for the Year 2010-11
Click Here For Macro economic and Monetary Developments : 2009-10