The Reserve Bank of India has
modified guidelines on exemption for scheduled commercial banks
from maintaining minimum statutory cash reserve ratio requirement
of 3 per cent only for term deposits and term borrowing liabilities.
This exemption, for 15 days to one year’s time, will be effective
from August 11.
Potential savings of $35 million
per annum as debt servicing costs comes for India following
the Asian Development Bank’s linking of its loan portfolio to
the London Interbank Offered Rate.
Confederation of Indian Industry
and Federation of Indian Chambers of Commerce and Industry have
said that the downward revision of India’s local currency rating
by Standard & Poor’s is not based on a complete picture
of the economy.
