As expected by the trade markets, Reserve Bank of India has announced that there would be no changes in the interest ratio for the short term loans extended by it to the banks.
RBI governor Mr. Raghuram Rajan informed this at the review meeting conducted on debt policy in Mumbai.
He further informed that if money circulation track is set on the right track, the interest ratio will be at 5.75% and the interest ratio for sort term loans will be at 7.75%.
In a similar vein, ‘Cash-on-hand’ ratio is unchanged and continues at 4%.
It is expected that there would be bright prospects for reduction in the interest ratio for short term loans after the completion of the budget sessions in the parliament when more favourable developments may help.
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