Monetary Measures
•
Bank Rate kept unchanged at 6.0 per cent. Reverse Repo Rate
and Repo Rate kept unchanged at 6.00 per cent and 7.75 per cent,
respectively.
•
The Reserve Bank retains the option to conduct overnight repo
or longer term repo under the LAF depending on market conditions
and other relevant factors.
•
Cash reserve ratio (CRR) of scheduled banks increased to 8.25
per cent with effect from the fortnight beginning May 24, 2008.
Developmental and Regulatory Policies
• Issuances of Floating Rate
Bonds (FRBs) to be considered at an appropriate time taking
into account market conditions.
• A module of the NDS auction
for non-competitive bidding scheme in the auctions of State
Development Loans (SDLs) being developed by the CCIL is expected
to become functional by September 2008.
• Action on the recommendations
of the Working Group on Interest Rate Futures would be initiated
on the basis of the feedback received.
• A settlement mechanism in
Government securities through settlement banks for participants
who do not maintain current accounts but maintain SGL accounts
with the Reserve Bank to be operationalised in May 2008.
• To allow access to NDS-OM extended to investors such
as other non-deposit taking NBFCs, corporates and FIIs through
the CSGL route.
• Following the enactment of the Payment and Settlement
Systems Act, 2007, a clearing and settlement arrangement for
OTC rupee derivatives to be put in place in consultation with
the CCIL.
• Currency futures to be introduced in the eligible exchanges
in consultation with the SEBI; the broad framework to be finalised
by the end of May 2008; RBI-SEBI Standing Technical Committee
has been set up to advise on operational aspects.
• Indian parties may approach
the Reserve Bank for capitalisation of export proceeds for exports
outstanding beyond the prescribed period of realisation.
• To permit authorised dealer
(AD) banks to write off, in addition to claims settled by the
Export Credit Guarantee Corporation of India (ECGC), the outstanding
export bills settled by other insurance companies which are
regulated by the Insurance Regulatory Development Authority
(IRDA).
• To enhance the present period
for realisation and repatriation to India of the full export
value of goods or software exported from six months to twelve
months from the date of export, subject to review after one
year.
(Source: RBI website)
