Credit policy to reckon with many a variable

The revamped board of the Reserve Bank of India is to meet in New Delhi on April 15 and the slack season credit policy meeting of the RBI Governor with the chiefs of banks is scheduled a couple of days after. For the RBI, the credit policy has to reconcile expectations of a cut in interest rates on deposits and lending with an inflation rate touching 9.9 per cent. At the retail level, price inflation has already touched twin figures making bank deposits at 10 per cent totally unattractive. The thumb rule for deposit rates, according to top RBI sources, is that it should be at least one or two percentage points above the inflation rate.

Fifth pay panel constituted

The Government on Saturday announced the constitution of a three-member, fifth pay commission, headed by the former Supreme Court Judge, Mr. Justice S. R. Pandian. The other members of the commission would be Prof. Suresh Tendulkar, as member, and Mr. M. K. Kaw, as member-secretary. The commission is also being asked to look into the pension structure... It would also examine the work environment, work methods, possible reduction in paper work and optimize the size of the Government machinery.

Apex body for road projects proposed

The Government proposes to set up an apex body at the national level to handle all road projects. An official release said irrespective of the outlay, such schemes were also proposed to be exempted from the purview of the Public Investment Board and the Cabinet Committee on Economic Affairs. This assumes significance as up to hundred per cent foreign equity participation would now be permitted for road projects set up by foreign private investors.

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