Credit Policy highlights

• Reserve Bank reduces to 50 per cent, risk weightage for loans up to Rs one lakh against gold and silver ornaments.

• External Commercial Borrowings prepayment to be allowed up to $400 million

• Reserve Bank further liberalises individual foreign remittance, doubles present limit to $100,000 per financial year for capital account transactions

• Overseas investments ceiling for mutual funds increased to $4 billion from $3 billlion

• Price risk hedging may be allowed in commodities such as aluminium, copper, lead, zinc and nickel in international commodity exchanges

• Listed companies can invest up to 35% of net worth abroad as against 25% earlier

• Working group to be set up to look into the development of interest rate futures market

• Credit guarantee scheme for distressed farmers introduced

• Aviation turbine fuel users may be allowed to hedge their economic exposure international commodity exchanges