Credit Policy-All Options Open

what it described as its 'policy' for the 1971-72 busy season. The preamble to the policy, as set out in the Governor's letter to commercial banks, runs as follows: "The overall economic situation warrants a cautious approach so as not to aggravate the inflationary factors in the economy but to provide all possible assistance for achieving a step up in industrial production and meeting the requirements of financing food procurement, priority sectors and defence- oriented production". The letter also urges banks to he alert to the requirements of industrial units assisted by the Industrial Reconstruction Corporation of India.