Rediff On The NeT Business News: Monetary and Credit Policy 1999-2000 -- Highlights of the second half


	HOME \| BUSINESS \| MONETARY AND CREDIT POLICY 1999-2000 \| HIGHLIGHTS

October 29, 1999

Bank rates unchanged.
CRR cut to 9 per cent.
Gross fiscal deficit in the first five months at 60.2 per cent of budget estimates.
CRR to increase banks lendable resources by Rs 70 billion.
CRR cut to effected in two stages -- November 6 and November 20, 1999.
Banks can charge rates without reference to PLR.
RBI sees GDP growth at 6-6.5 per cent.
30 per cent import finance surcharge withdrawn.
M3 growth of 15.5 -16 per cent in April "appears reasonable".
Withdraws incremental CRR of 10 per cent on FCNR(B) from November 6, 1999.
RBI permits Indian banks to offer cheque writing facility to gilt funds.
To include banks' cash-in-hand for CRR compliance for two months from December 1, 1999 to January 31, 2000.
Minimum maturity for FCNR(B) raised from six months to one year.
Incremental CRR of 10 per cent on FCNR(B) withdrawn from November 6, 1999.
RBI says fiscal situation does not "augur well for future".
Net government borrowing Rs 579.77 billion until October 26, gross borrowings at Rs 726.3 billion.
Money market, mutual funds to be set up only as trusts.
RBI expects current account deficit below 2 per cent despite increase in oil prices.
RBI to continue buying T-bills "when considered necessary".
Wholesale Price Index inflation for 1999-2000 likely to be below last year's 4.8 per cent.
RBI says there should be no difficulty in meeting liquidity needs of various sectors.

ALSO SEE

RBI Governor Bimal Jalan's policy statement