Based on assessment of household cash  BIS Review 71/2007  3  flows, the limits are sanctioned without insistence on security or purpose. Interest rate on the facility is completely deregulated. A simplified mechanism for one-time settlement of overdue loans up to Rs.25,000/- has been suggested for adoption.
Overall, then, our expectation remains that the economy will be well placed for expansion towards the end of this year. Initially it will be fairly gradual, in part because of the global factors to which I referred earlier.