Credit Policy announced by Reserve Bank, today, signals stability and
growth. While, Bank Rate has been kept unchanged at 6.0 per cent,
Repo rate hike of 0.25 per cent is basically to reduce excess
liquidity and help in controlling inflation. So further hike in bank
lending rates are generally ruled out,in near future.

Other relevant highlights of policy are-

Ceiling on Interest Rates on NRE Deposits raised by 50 basis points
over US dollar LIBOR/SWAP rates of corresponding maturities.
Banks may fix the ceiling on interest rates on FCNR(B) deposits on
monthly basis.
Minimum tenor of retail domestic term deposits reduced to 7 days.
Composite loan limit for SSI entrepreneurs enhanced from Rs.50 lakh
to Rs.1 crore.
Banks may now extend direct finance to housing sector up to Rs.15
lakh under priority sector lending.

Check out Special secion on credit policy at:
http://www.banknetindia.com/banking/policyoct04.htm

OR Visit- http://www.banknetindia.com