Highlights of the policy:

1. Accounting method of savings bank interest rate to be changed from Apr 2010

2. Interest payment on saving bank accounts to be calculated daily product basis

3. Working group to suggest changes for basic prime lending rates (BPLR) system

4. Working group on BPLR system to submit report end August

5. To launch exchange traded rate futures contract soon

6. Extends special refinance facility to banks till March 2010

7. Extends special 14-day repo facility to banks till March 2010

8. To conduct special 14-day term repo weekly basis

9. RBI to announce first quarter review of monetary policy on Jul 28

Like all emerging economies, India too has been impacted by the crisis, and by much more than what was expected earlier. The extent of impact has caused dismay, mainly on two grounds: first, because our financial sector remains healthy, has had no direct exposure to tainted assets and its off-balance sheet activities have been limited; and second, because India’s merchandise exports, at less than 15% of the GDP, are relatively modest,” the RBI, in a statement, said. “Despite these mitigating factors, the impact of the crisis on India evidences the force of globalisation as also India’s growing two-way trade in goods and services and financial integration with the rest of the world.