Policy interest rates were reduced aggressively and rapidly, the quantum of bank reserves kept with the central bank was reduced significantly. Refinance facilities for specific sectors like SME/housing and exports were provided or increased.
Measures aimed at managing forex liquidity included an upward adjustment of the interest rate ceiling on the foreign currency deposits by non-resident Indians, relaxing the external commercial borrowings (ECB) regime for corporates, and allowing non-banking financial companies and housing finance companies access to foreign borrowing, as also rupee-dollar swap facility for Indian banks’ overseas branches.