Date |
Event |
1 &
3 Jul 1991 |
External Payments Crisis.
Rupee Devalued in two stages. Cumulative devaluation about 18
percent in USD terms. |
Nov
1991 |
The
Narsimahmam Committee Report suggested far reaching reforms in the
Indian Banking sector. These included a phased reduction in the SLR
and CRR as well as accounting standards, income recognition norms
and capital adequacy norms. |
Mar
1992 |
A dual exchange rate system
called Liberalised Exchange Rate Management System (LERMS)
introduced. This was the initial step to enable a transition to a
market determined exchange rate system. |
Apr
1992 |
Income
recognition and asset classification norms introduced. Provisioning
and Capital adequacy standards specified. Indian Banks required to
fulfill these norms by 1994 and 1996. |
22 Dec
1992 |
C. Rangarajan appointed
Governor. |
1992 |
SEBI
formulated ‘Insider Trading Regulations’. |
1993 |
Unified Exchange rate. |
1993 |
Guidelines
for the establishment of private sector banks issued. This heralds a
new policy approach aimed at fostering greater competition. |
15 Jul
1994 |
Nationalised Banks allowed
to tap the capital market to strengthen their capital base. |
Jun
1994 |
National
Stock Exchange commenced operations |
1994 |
‘Committee on Reform of
the Insurance Sector’, RN Malhotra. |
Aug
1994 |
Rupee made
convertible on the Current Account. Acceptance of Article VIII of
the Articles of Agreement of the IMF. |
Oct
1994 |
Lending rates of commercial
banks deregulated. Banks required to declare their Prime Lending
Rates (PLR). |
3
Feb 1995 |
Bharatiya
Reserve Bank Note Mudran Limited established as a fully owned
subsidiary of the Reserve bank. Commenced printing of Notes at
Mysore on June 1 and at Salboni on December 11. |
Jun
1995 |
The Office of the Banking
Ombudsman established for expeditious & inexpensive resolution
of customer complaints related to Banking services. |
Oct
1995 |
Banks are
allowed to fix their own interest rates on domestic term deposits
with maturity of two years. |
17 Sep
1996 |
RBI Web site made
operational. |
1
Apr 1997 |
RBI &
Government of India agree to replace the system of ad hoc Treasury
Bills with Ways and Means Advances ending automatic monetisation of
fiscal deficits. |
6 Jun
1997 |
RBI Conducts first auction
of 14 day Treasury Bills. In October, auction of 28 day Treasury
Bills was introduced. |
10
Jul 1997 |
Foreign
Institutional Investors (debt funds) permitted to invest in dated
Government Securities. |
22 Nov
1997 |
Bimal Jalan appointed
Governor. |
28
Nov 1997 |
A series
of measures introduced in response to the Asian Currency Crisis. |
28 Nov
1997 |
Fixed rate repos in G-Secs
introduced to give maneuverability in liquidity management; and to
bring orderly conditions in money and forex markets. |
19
Dec 1997 |
Capital
Index Bonds introduced for first time. Inflation hedged instrument
linked to Wholesale Price Index. |
Apr
1998 |
Recommendations on the
harmonisation of the Role and Operations of Development Financial
Institutions and Banks paved the way for universal banking in India. |
11
Dec 1998 |
RBI
Monetary Museum Web Site launched. |
20 Apr
1999 |
Interim Liquidity Adjustment
Facility introduced. |
Jul
1999 |
Interest
Rate Swaps (IRS) and Forward Rate Agreements (FRAs) introduced as
OTC derivatives. |
Nov
1999 |
RBI issued guidelines to
banks for the issuance of debit cards and smart cards to ease
pressure on physical cash. |
1999 |
Foreign
Exchange Management Act, 1999 replaces FERA, 1973 with the objective
of ‘facilitating external trade and payments’ and ‘promoting
the orderly development and maintenance of foreign exchange market
in India’. The new act became operative from June 2000 along with
a sunset clause. |