TABLE 3.5

                  Current Interest Rates of
                 Scheduled Commercial Banks
                                       (Per cent per annum)
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A.  Bank Deposits (Domestic)
    (a) Savings deposits	                  4.5
    (b) Term deposits
	  (i) 30 days to 1 year  	         10.0
	      (ceiling)
	 (ii) Over 1 year	                 Free
B.  Bank credit

I   General credit (excluding export credit)
	(a) Upto Rs. 25000	                 12.0
	(b) Over Rs.25000 and
	    upto Rs. 2 lakhs	                 13.5
	(c) Over Rs. 2 lakhs	                Free1
II  DRI advances	                            4
III Rupee export credit
	(a)Pre shipment credit
	    (i)	Up to 180 days	                 13.0
	   (ii)	Beyond 180 days and
		upto 270 days	                 15.0
	  (iii)	Against incentives
		receivable from the Government2
		(upto 90 days)	                 13.0
	(b)Post shipment credit
	    (i) Demand bills for transit period. 13.0
			(as specified by FEDAI)
	   (ii)	Usance bills3
		(a) upto 90 days	         13.0
		(b) beyond 90 days and
		    upto 6 months4	         15.0
	  (iii) beyond 6 months4	         Free
	   (iv)	Against incentives
		receivable from the Government
			against ECGC guarantee
			(upto 90 days)	         13.0
	    (v)	Against undrawn balances
			(upto 90 days)	         13.0
	   (vi)	Against retention money5
			(upto 90 days)	         13.0
        (c) Deferred credit
	    (beyon d 180 days)	                 Free
	(d) Export credit not stated otherwise	 Free
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1  Banks can  fix  and  declare  their  own prime lending 
   rate  (PLR)  with  the  approval  of  their  Board  of 
   Directors.   This rate should be the same for all  the 
   branches of a bank.Banks are also required to announce 
   the spread  over PLR for advances  other than consumer
   credit, along with the announcement of their PLR.
2  Covered by ECGC Guarantee.
3  For total period including both usance period of export
   bills, transit period as  specified by  FEDAI and grace 
   period, if any.
4  From date of shipment.
5  Payable within one year from the date of shipment. (for
   supplies portion only).

Note:   Banks are  free to specify interest rates on rupee
        export credit (beyond 6 months),loans for purchase
        of consumer durables, loans to individuals against 
        security of  shares,  debentures/bonds  and  other 
        non-priority sector loans.
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