Third, during 1971–90, the focus of monetary policy was on credit planning. However, the dominance of fiscal policy over monetary policy accentuated and continued through the 1980s.
To raise resources for the government from banks, the statutory liquidity ratio (SLR) was progressively increased from the statutory minimum of 25 per cent of banks’ net demand and time liabilities (NDTL) in 1970 to 38.5 per cent by 1990.