The Economic Survey of India, 1997

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Current Interest Rates of Scheduled Commercial Banks
(Per cent per annum)
[TABLE 3.5]

 

A.

Bank Deposits (Domestic)

 

(a)

Savings deposits

4.5

(b)

Term deposits

 

(i)

30 days to 1 year (ceiling)

10

(ii)

Over 1 year

Free

B.

Bank credit

 

I

General credit (excluding export credit)

(a)

Upto Rs. 25000

12

(b)

Over Rs.25000 and upto Rs. 2 lakhs

13.5

(c)

Over Rs. 2 lakhs

Free1

II

DRI advances

4

III

Rupee export credit

 

(a)

Pre shipment credit

 

(i)

Up to 180 days

13

(ii)

Beyond 180 days and

 
 

upto 270 days

15

(iii)

Against incentives receivable from the Government2 (upto 90 days)

13

(b)

Post shipment credit

 

(i)

Demand bills for transit period.

13

 

(as specified by FEDAI)

 

(ii)

Usance bills3

 
 

(a) upto 90 days

13

 

(b) beyond 90 days and upto 6 months4

15

(iii)

beyond 6 months4

Free

(iv)

Against incentives receivable from the Governmentagainst ECGC guarantee(upto 90 days)

13

(v)

Against undrawn balances (upto 90 days)

13

(vi)

Against retention money5 (upto 90 days)

13

(c)

Deferred credit (beyond 180 days)

Free

(d)

Export credit not stated otherwise

Free

  1. Banks can fix and declare their own prime lending rate (PLR) with the approval of their Board of Directors. This rate should be the same for all the branches of a bank. Banks are also required to announce the spread over PLR for advances other than consumer credit, along with the announcement of their PLR.
  2. Covered by ECGC Guarantee.
  3. For total period including both usance period of export bills, transit period as specified by FEDAI and grace period, if any.
  4. From date of shipment.
  5. Payable within one year from the date of shipment. (for supplies portion only).
  6. Banks are free to specify interest rates on rupee export credit (beyond 6 months), loans for purchase of consumer durables, loans to individuals against security of shares, debentures/bonds and other non-priority sector loans.

 

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The Economic Survey Of India, 1997

Document released by the Ministry of Finance, Government of India, on 25th February, 1997.
Made available on the Web on the same day, by MediaWeb India, on
The Indian Economy Overview (http://www.m-web.com).

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