MAIN MEASURES
* No change in bank or repo rate
* Definition of infrastrucutre lending broadened.
* Gold Card Scheme for creditworthy exporters drawn up.
* Limit on the lending of non-bank participants in the call/notice money market reduced to 45 percent effective June 26, 2004.
* Banks allowed to raise long-term bonds to finance infrastructure
* 15% cap on unsecured exposures for banks withdrawn
More From This Section
* Exposures on all public financial institutions (PFIs) to attract a risk weight of 100 per cent
* Banks required to maintain capital charge for market risk in a phased manner
* Banks to make higher provisioning according to the age of NPAs.
* Fresh licences to UCBs only after a comprehensive policy.
* Board for Payment and Settlement Systems set up
STANCE OF POLICY
* Provision of adequate liquidity to meet credit growh, support investment and credit demand
* Interest rate environment conducive to maintaining growth momentum and macroeconomic and price stability
TARGETS
* GDP Growth for 2004-05 -- 6.5-7 %
* Inflation Rate: 5%
* Money Supply: 14%
* Credit growth: 16-16.5%
LOOKING FORWARD
* India to reamin top performer in terms of GDP growth
* Price situation unlikely to cause concern to macro stability
* Need to remove bottlenecks in credit flow to farm, SMEs