EDITORIAL COMMITTEE Chairman : Narendra Jadhav Members : Balwant Singh Michael Debabrata Patra Associate Editors : Rajiv Ranjan Muneesh Kapur Dhritidyuti Bose The objective of the Reserve Bank of India Occasional Papers is to publish high quality research produced by the staff of the Reserve Bank of India on a broad array of issues of interest to a large audience including academics and policy makers. The papers selected for publications are subject to intense review by internal and external referees. The views expressed in the articles, notes and reviews published in this journal are those of the authors and do not necessarily reflect the views of the Editorial Committee or of the Reserve Bank of India. Moreover, the responsibility for the accuracy of statements contained in the contributions rests with the author(s). © Reserve Bank of India 2003 All rights reserved. Reproduction is permitted provided an acknowledgment of the source is made. Subscription rates for 2003 are : Inland : Rs. 80 (inclusive of postage) Foreign : US $ 45 (inclusive of registered air mail charges) There is no special rate for any category of subscribers. Subscriptions and orders, accompanied by cheques/drafts drawn on Mumbai in favour of Reserve Bank of India, should be sent to : The Director, DRRP (Sales Section), Department of Economic Analysis and Policy, Reserve Bank of India, Amar Building (Ground Floor), Post Box No. 1036, Mumbai - 400 001 (India). All other correspondence may be addressed to the Chairman, Editorial Committee, Reserve Bank of India Occasional Papers, Department of Economic Analysis and Policy, Reserve Bank of India, Post Box No.1036, Mumbai - 400 001; E-mail : narendrajadhav@rbi.org.in