Rediff Logo
Money
Line
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Women
Partner Channels: Auctions | Health | Home & Decor | IT Education | Jobs | Jobs | Matrimonial | Travel
Line
Home > Money > Reuters > Report
October 22, 2001
Feedback  
  Money Matters

 -  'Investment
 -  Business Headlines
 -  Corporate Headlines
 -  Business Special
 -  Columns
 -  IPO Center
 -  Message Boards
 -  Mutual Funds
 -  Personal Finance
 -  Stocks
 -  Tutorials
 -  Search rediff

    
      



 Deals for NRIs

 CALL INDIA
 Direct Service :
 29.9/min
 Pre-paid Cards :
 34.9/min


 
Reuters
 Search the Internet
         Tips
 Sites: Finance, Investment
E-Mail this report to a friend
Print this page Best Printed on  HP Laserjets

RBI does not expect government to cut small savings rate now

CREDIT
POLICY
The Reserve Bank of India Governor Bimal Jalan said on Monday he did not expect the government to cut rates on small savings schemes administered by it immediately.

"It is up to the government to decide on a savings rate cut. I do not expect one now," Jalan told reporters.

Interest rates on government-administered small savings are used by commercial banks to set rates on their long-term deposits.

Earlier, the central bank's mid-year review of monetary and credit policy for 2001-02 cut banks' cash reserve ratio in two stages to 5.50 per cent from 7.5 per cent.

The bank rate, used by commercial banks to price their loans, was lowered to 6.5 per cent from seven per cent.

The RBI said there was limited scope for banks to lower their lending rates, citing large levels of bad loans with banks, their high operating expenses and the returns on small saving schemes as some of the hurdles.

YOU MAY ALSO WANT TO READ:
The Monetary & Credit Policy

Back to top
(c) Copyright 2000 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Tell us what you think of this report

ADVERTISEMENT