The SLR was brought down from 38.5 per cent of net demand and time liabilities (NDTL) in early 1992 to 25 per cent in mid -1994. The CRR has been progressively reduced to 5 per cent from 15 per cent in 1991. Fourth, interest rate deregulation was initiated across different segments.
In September 1990, all sector-specific and use specific interest rate prescriptions were abolished except for loans below Rs.200,000 which were subject to a minimum rate prescription. In October 1994, the minimum rate prescription was withdrawn and the lending rates of banks were made free subject to the setting of the prime lending rate (PLR).