Chronology of Events

Developing the Markets : Seeds of Liberalisation - 1985 to 1991

Date Event
10 Apr 1985 S. Chakravarty Committee was set up to review the working of monetary system. Its recommendations had far reaching consequences.
1985 By mid-1985, the statutory preemption on banks' resources in the form of the Statutory Liquidity Ratio (SLR) and the Cash Reserve Ratio (CRR) exceeded 45%.
Nov 1986 182 day TB introduced.
Jan 1987 Board for Industrial and Financial Reconstruction set up and became operational wef May 1987 reflecting concerns related to Industrial Sickness.
Mar 1987 Magnetic Ink Character Recognition (MICR) technology introduced for cheque clearing. Efforts at mechanising cheque clearing operations.
28 Dec 1987 Indira Gandhi Institute of Development Research (IGIDR) was established by Reserve Bank as an advanced studies institute to promote research on Development issues from a multi-disciplinary point of view.
Apr 1988 Security & Exchange Board of India (SEBI) established to deal with the development and regulation of the securities market and investor protection.
Apr 1988 The Discount and Finance House of India, set up as a money market institution, commenced operations.
Jul 1988 The National Housing Bank established as an apex body of housing finance and to promote activities in housing development.
Aug 1988 Stock Holding Corporation of India Ltd. (SHCIL) a depository institution commenced operations.
Oct 1988 Maximum lending rate abolished. Banks free to charge customers according to their credit record.
Mar 1989 Certificates of Deposit (CDs) and Commercial Paper (CPs) introduced in India to widen the monetary instruments and give investors greater flexibility.
Apr 1989 Banking, Public Financial Institution and Negotiable Instruments Laws (Amendment) Act, 1988 enacted to encourage the culture of use of cheques in India. It introduced penalties for the dishonour of cheques.
Apr 1989 Service Area Approach for rural lending became operational.
1 Jul 1989 CRR raised to 15 per cent taking statutory preemptions of banks' resources in the form of the Statutory Liquidity Ratio (SLR) and the Cash Reserve Ratio (CRR) to over 53%.
15 May 1990 Agriculture and Rural Debt Relief Scheme, 1990 providing debt relief upto Rs 10,000 to small borrowers from Public Sector Banks and Regional Rural Banks announced.
22 Dec 1990 S. Venkitaramanan Governor.