Interest rates on non-resident deposit schemes, which have been recording sizeable inflows, were reduced by 50 basis points for rupee deposits and by 25 basis points for foreign currency deposits. Banks were also restrained from granting fresh loans in excess of Rs.20 lakhs against non-resident deposits.
The Reserve Bank has indicated that over the remaining part of the year, liquidity management would receive the highest priority. All policy instruments would be deployed to ensure appropriate modulation of liquidity.