National Economic Events in August 2000

PM announces decision to increase Excise exemption limit for Small Scale Industries to Rs. 1 crore from Rs.50 lakhs and 12 per cent capital subsidy for technology upgradation.

Futures trading in crude oil and petroleum products permitted to hedge against high-volatility in international prices.

Foreign equity investment in micro-credit and rural credit operations permitted.RBI raises bank rate by one percentage point to 8 per cent; CRR raised by 0.5 per cent to 8.5 per cent to contain rupee slide.

RBI scales down balances in Exchange Earners Foreign Currency (EEFC) accounts to 50 per cent of the level as of August 11 to stem the decline in Re. value.

GoI announces opening up of national long-distance communications to the private sector with no restriction on the number of players.

Insurance schemes for the poor launched by Prime Minister.

Foreign direct investment (FDI) policy relaxed in respect of Special Economic Zones, Internet Service Providers and venture capital funds.

SEBI-RBI panel recommends that banks' exposure to the capital market by way of investments in shares, debentures and units of mutual funds may be linked with their total outstanding advances, with a ceiling of five per cent, against five per cent of incremental deposits in force now.