Credit Policy announced by Reserve Bank of India, today, signals
stability and growth. 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.

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.

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

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