Consequently, there is widespread appreciation of the efforts to ensure reduction in existing high levels of revenue deficit and fiscal deficit, besides rationalising administered interest rates on contractual savings to impart efficiency and operational flexibility to the financial sector. During this period, most interest rates have been deregulated.
The few prescriptions that exist, viz., export credit, small loans, foreign currency deposits are in the nature of ceilings related to market interest rates such as the relevant Prime Lending Rate (PLR) of the concerned bank or the LIBOR of the concerned currency. Currently, the only administered interest rate is on saving deposits.