New Delhi: Finance Minister Jaswant Singh today (Mar 21, 2004) said the Reserve Bank of India (RBI) as an autonomous body was free to announce its monetary policy irrespective of the ensuing general elections.

"RBI is an autonomous institution. It is free to announce the credit policy," said Singh when asked if RBI could announce the lean season credit policy for six months beginning April 2004 in view of the elections.

Singh, however, refused to comment on the propriety of RBI announcing the policy in end-April in the midst of Lok Sabha elections.

The credit policy broadly deals with cash reserves the banks have to maintain with RBI and credit to priority sector like agriculture and small-scale industries. Lowering of statutory reserves would translate into cut in bank interest rate.

Any announcement in the policy could be constructed as a violation of the Election Commission's model code of conduct.