New Credit Policy To Be Delayed

Sources in the central bank said that the credit policy might be announced on October 17.

Reserve Bank governor C Rangarajan, who is in Washington to attend the annual IMF- World Bank meet, will return to India on October 6 and the meeting of the central board of RBI is scheduled on October 10 in Goa", banking sources said.

"The policy will be announced only after that," a central bank official said.

The credit policy is being awaited anxiously both by the bankers and the industry as it is felt that the RBI is likely to cut the cash reserve ratio (CRR). While one section of bankers feels that the CRR cut might be by two percentage points, another section believes the cut in the CRR may be by only one percentage point.