Banks can offer differential rates of interest on wholesale domestic term deposits different from those offered on the retail domestic term deposits. Interest rate ceilings on export credit in foreign currency and nonresident deposits are prescribed but they are transparently linked to international interest rates. The Reserve Bank provides information on its website on the range of deposit rates and lending rates.
We, thus, made a carefully calibrated transition from an administered interest rate regime to one of market determined interest rates over a period of time, while minimising disruption and preserving financial stability. This approach also provided market participants adequate time to adjust to the new regime.