Highlights of Credit Policy - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Highlights of Credit Policy

Apr 19, 2001

  1. RBI to provide adequate liquidity to meet credit growth and support revival of investment demand.

  2. RBI expects the present stable interest rate environment to continue and announces a preference for further softening during the year.

  3. Measures to reduce interest rates on export credit by 1 to 1.5 percentage points and rationalise export credit refinance.

  4. Banks are allowed to offer higher interest on deposits held by Senior Citizens.

  5. RBI to streamline its role by divesting ownership in financial institutions.

  6. Revised guidelines on exposure of banks to stock markets to be effective May 2001 after further consultations.

  7. The credit growth (non–food credit) for FY01 has registered a lower growth of 14.3% compared to 16.5% in the previous year. However, the RBI has indicated a growth of 17% in the current fiscal year.

  8. The Credit Policy is also focusing on structural changes. The setting up of Clearing Corporation is expected to impart greater transparency to debt, forex and money markets.

  9. Non-banking financial companies (financial institutions and mutual funds) will not be allowed to lend in the call money markets. Their participation will be phased out gradually.

  10. Interest on cash balances maintained with the RBI under CRR will be increased to 6% with effect from April 21, 01 from the current 4%.

  11. Setting up of 7 more debt recovery tribunals (DRTs) in FY02 as indicated in the current budget in addition to the existing 22 DRTs. The government has also proposed to bring in legislation facilitating foreclosure and enforcement of securities in case of default. This will enable banks and financial institutions to realise their dues.

  12. With immediate effect, urban co-operative banks (UCBs) are being advised not to lend directly or indirectly to individuals or corporates against security of stocks. They are also advised to unwind existing lending to stockbrokers or direct investment in shares, which were not permissible, at the earliest.

Equitymaster requests your view! Post a comment on "Highlights of Credit Policy". Click here!


More Views on News

Data is the New Oil but It's Also the New Sugar. Here's How to Fight it (Profit Hunter)

Jun 1, 2020

Is too much data hurting your quest for market beating returns?

Quantum Mutual Fund: Hum woh nahi hain (The Honest Truth)

Apr 29, 2020

Ajit Dayal on how the mutual fund industry robs you of your wealth.

This One Trigger Could Turnaround Yes Bank's Stock Price (The 5 Minute Wrapup)

Oct 16, 2019

If Yes Bank manages to do this, it could be the start of a much-needed turnaround for the bank.

Gold could Hit 40,000 Sooner Than Expected (Profit Hunter)

Aug 16, 2019

Domestic gold prices are firing on both engines now. Gold prices could touch 40,000 faster than you could imagine.

3 Rebirth of India Opportunities Are Racing Ahead in These Gloomy Times... (Views On News)

Jun 28, 2019

Tanushree Banerjee shares an update on the Rebirth of India and reveals her top 3 trends...

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms