Mumbai: The Reserve Bank of India on April 29 announced a cut in the Cash Reserve Ratio (CRR) by 50 basis points effective fortnight of June 15.

Bank rate may also be cut up to 50 basis points depending on the monetary development but no timing has been fixed, the RBI said in its annual monetary and credit policy for 2002-03.

The RBI said the GDP growth for 2002-03 was projected at six to 6.5 per cent while inflation was expected to remain low at slightly less than four per cent.

There is no change of interest rate on savings account.

The RBI said interest rate on export credit in foreign currency was being lowered to LIBOR plus 0.75 per cent from LIBOR plus one per cent.

The apex bank also announced abolition of minimum lending rate for co-operative banks and said softer interest regime is to continue.

Greater flexibility to interest rate structure in the medium-term has been provided.

PTI