Bank rate was cut by 25 basis points (bps) to 6.25 per cent.
The Reserve Bank of India (RBI) requested banks to pare spreads in lending rates in order to bring down their prime lending and deposits rates.
CRR was cut by 25 bps to 4.75 per cent, which released Rs 3,000 crore into the banking system. In the last two years, the CRR has been brought down by 375 bps.
More From This Section
The repo rate was brought down by 25 bps to 5.5 per cent, bringing down the floor for the overnight call money rates to 5.5 per cent.
Banks were asked to maintain 80 per cent of CRR balances on a daily basis. This was with a view to bring down the volatility of call rates, especially around reporting Fridays.
Liberalisation of interest rates on export credit in rupee terms was undertaken to reduce the cost of funds for exporters.
APRIL 2002
CRR was cut by 50 bps to 5 per cent, releasing Rs 5,000 crore into the banking system.
The RBI decided to allow a reduction of up to 50 bps in the bank rate --pegged at 6.5 per cent