Base Rate system causes variation in home loan interest rates across banks due to deregulation of lending rates.
The RBI deregulated lending rates and introduced the Base Rate framework effective 1 July 2010; banks set lending rates by reference to their Base Rate plus customer specific adjustments, and because Base Rates differ across banks housing loan interest rates vary. A ministerial statement appended an annexure listing public sector banks' minimum and maximum home loan rates as of early 2013, demonstrating bank level variation under the Base Rate system.

Customer entitlement to larger cheque books: banks must supply on request and maintain adequate branch stocks.
Banks must provide customers with cheque books having a larger number of leaves upon customer demand and maintain adequate stocks of these cheque books at all branches, pursuant to the Reserve Bank's master circular on customer service.

Cooperative credit societies exempt from banking licence requirement under banking regulation, but may accept deposits only from members.
Cooperative Credit Societies are not required to obtain a banking licence under the Banking Regulation Act; Primary Agricultural Cooperative Credit Societies may accept deposits only from their members and use those member deposits to provide credit and lending services to needy members.

External commercial borrowing automatic route: NTPC tied a LIBOR linked term loan, reaching the permitted automatic route cap.
NTPC secured a foreign currency term loan arranged by international bank branches for capital expenditure and station modernization, carrying a floating interest rate linked to LIBOR and a door-to-door maturity of seven years. The facility results in NTPC reaching the maximum amount permitted under the External Commercial Borrowing Automatic Route for the financial year under Reserve Bank guidelines.

Government market borrowing reduction leads to cancellation of a scheduled dated securities auction to align funding with cash needs.
Decision to reduce government market borrowing following a review of cash position and funding needs led to cancellation of a scheduled auction of dated securities for the current financial year, implemented in consultation with the Reserve Bank to align issuance with revised funding requirements.

MSME policy promotes institutional credit and supportive measures to strengthen entrepreneurship and inclusion in small industries.
The Minister emphasizes MSMEs as key to inclusive growth and details government measures to strengthen them: the Micro, Small and Medium Enterprises Development Act, 2006; a Task Force with ongoing recommendations; a Public Procurement Policy to increase purchases from micro and small enterprises; a dedicated entrepreneurial portal; specialized Small B bank branches for venture debt; a fund of funds venture capital facility; SME exchanges to enable listing; and policies for nursing and rehabilitation of sick MSME units.

Financial inclusion expanded through rural branch openings, business correspondent outreach, credit measures for MSMEs and joint liability group formation.
The RBI Central Board meeting in Guwahati prioritised deepening financial inclusion in Assam through expanded rural branch presence, strengthened business correspondent networks for electronic benefit transfers, and targeted increases in MSME credit. The State Level Bankers Committee endorsed strict adherence to collateral-free lending under a credit guarantee scheme, promotion of joint liability groups for agricultural credit, and reconsideration of upfront stamp duty collection from banks in recovery filings.

Foreign exchange earnings growth from tourism signals higher arrivals; FEEs compiled with quarterly RBI data subject to lag.
FEEs and FTAs showed year over year increases for January 2013: FEEs rose substantially in rupee terms and moderately in US dollar terms, while FTAs increased at a smaller rate compared with the prior year. The Ministry compiles FTAs monthly from major ports and derives FEEs from quarterly central bank reports, with FEEs published on a one year lag.

National income and GDP advance estimates show 5.0% real GDP growth, weak agriculture and manufacturing, and higher nominal GDP.
Advance estimates set GDP at factor cost in 2012-13 at Rs.55,03,476 crore (5.0% growth) at 2004-05 prices and Rs.94,61,979 crore (13.3% growth) at current prices; NNI is Rs.47,64,819 crore (4.2% growth) at constant prices and Rs.83,68,571 crore (13.1% growth) at current prices. The release highlights sectoral performance-relatively strong services and construction versus weak agriculture and manufacturing-and provides expenditure breakdowns (PFCE, GFCE, GFCF, stocks, valuables, exports, imports) with corresponding shares of GDP.

Selling and Distribution Overheads: standardized measurement and assignment rules ensure uniform cost statements and disclosures.
The standard requires Selling and Distribution Overheads to be measured as the aggregate cost of resources consumed in selling and distribution activities, valued at invoice or agreed price net of recoverable taxes and discounts, excluding imputed and abnormal costs. Allocation shall assign directly traceable overheads to cost objects, apply CAS 5 for transportation where relevant, and use either cause and effect or benefits received principles for apportionment. Credits, recoveries and subsidies must be deducted; post sales costs are to be reasonably estimated and long benefit overheads amortised.

Crude oil price increase: international and rupee prices rose due to both higher dollar oil rates and rupee depreciation.
International crude oil price for the Indian Basket rose to US$ 112.50 per barrel on 1 February 2013, up from US$ 112.39 the previous trading day, and the rupee price increased to Rs 5,998.50 per barrel from Rs 5,989.26, reflecting both the dollar-denominated price rise and a modest depreciation of the rupee (from Rs 53.29/US$ to Rs 53.32/US$).

Restructured bank advances must be disclosed by asset class and restructuring route; provisions for diminution must continue.
Banks must disclose restructured advances in Annual Balance Sheets under "Notes on Accounts" by asset classification and restructuring route, using the annexed format to report opening/closing balances, fresh restructurings, upgradations, downgrades, write offs and provisions. Standard restructured accounts that no longer attract higher provisioning or additional risk weight due to satisfactory performance need not be shown as restructured, but banks must continue to assess and maintain provision for diminution in fair value and retain internal records of such accounts.

Inflation management is central to policy; coordinated monetary, fiscal and supply side measures needed to restore price stability.
Persistent high inflation in 2010-12 remained despite a negative output gap because of interacting external and domestic supply shocks, currency depreciation, rising global commodity prices, stagnant agricultural productivity, structural changes in food demand, higher wages, fiscal expansion and strengthened inflationary expectations. Policy response must combine calibrated monetary action to anchor expectations with fiscal consolidation and structural supply-side reforms - including food security measures, market related energy pricing, expanded electricity generation, improved supply chains, exchange rate management and deeper financial markets - to restore durable price stability.

Financial inclusion drive: banks must run standardized literacy camps linking education to account opening and monitored usage.
RBI directs banks to use the provided Financial Literacy Guide, diary and posters to run monthly outdoor Financial Literacy Camps linking literacy with account access. Camps must follow a three-stage, three-month regimen-awareness and diary distribution; introduction of Business Correspondents and enrollment for account opening with ICT demonstration; and a review of account operation and usage-supported by branch visits, timely card delivery and structured monitoring by bank head offices and SLBCs/DCCs.

External Commercial Borrowing eligibility expanded to let hotel companies refinance rupee debt and fund capital expenditure.
Reserve Bank of India amended External Commercial Borrowing guidelines to allow Indian hotel sector companies to borrow under the ECB scheme for repayment of outstanding rupee loans and for financing fresh capital expenditure, subject to a project cost threshold qualifying criterion and without geographic limitation on project location.

National income revision highlights GDP slowdown and altered contributions from services, consumption, saving and investment.
First Revised estimates for 2011-12 show GDP growth at constant (2004-05) prices decelerating to about 6.2-6.3%, with the slowdown driven by weaker agriculture and secondary sector performance offset in part by stronger services (financing and insurance; real estate and business services; transport, storage and communication; electricity; trade, hotels and restaurants). Private final consumption expenditure rose in current and constant terms. Gross domestic saving fell as a share of GDP due to lower financial saving rates across household, corporate and public sectors, while gross fixed capital formation increased in value though its rate relative to GDP eased.

Interest rate reduction gives limited space to support growth while anchoring inflation expectations and easing liquidity.
The Reserve Bank lowered the policy repo rate, adjusted the linked standing facility rates and reduced the cash reserve ratio, injecting primary liquidity to ease tight systemic liquidity, support credit flow and encourage investment while maintaining a commitment to anchor medium term inflation expectations.

Crude oil price decline prompts marginal fall in rupee denominated oil cost and reflects exchange rate movement.
International crude oil price for the Indian Basket fell to US$ 110.35 per barrel on 28 January 2013 from US$ 110.64 on 25 January 2013; in rupee terms the price decreased to Rs 5,946.76 per barrel, a change attributed to the fall in the dollar-denominated price, with the exchange rate at Rs 53.89 per US$ on 28 January 2013.

Indian economy: calibrated monetary stance as growth slows, inflation stays elevated, CAD widens and reforms remain crucial.
Monetary policy must remain calibrated as growth likely undershoots projections and inflation, though moderating, remains elevated with upside risks from suppressed administered prices and food. A widening current account deficit driven by trade deterioration constrains monetary easing despite temporary financing from capital inflows. Tight liquidity from government cash balances prompted Reserve Bank liquidity injections and regulatory easing, but broad money growth stayed below targets and deposit growth lagged credit. Fiscal consolidation and structural reforms are needed to create space for policy, revive investment and sustainably address inflation and external vulnerabilities.

Bulk deposit rules: banks may vary interest rates and may disallow premature withdrawal for large term deposits, subject to disclosure.
Banks may classify single Rupee term deposits of a prescribed large size as bulk deposits and may offer uniform or differential interest rates for such bulk deposits of the same maturity. For deposits below that threshold the same rate must apply for the same maturity. Banks must disclose in advance the schedule of interest rates and ensure payment as per the schedule. Banks may determine penal rates for premature withdrawal and may disallow premature withdrawal of bulk deposits if notified at acceptance; deposits below the bulk threshold must be allowed premature withdrawal on request subject to penal rates.