1. The Gold based Deposit scheme, of Bankers will work as follows: a customer can buy gold by depositing the market price of the metal with the bank. The bank will provide the customer a receipt for physical deposit of gold. The customer can either get the gold in physical form or its value at the prevailing market price anytime after a specified period, say five or 10 years. A customer can keep on depositing funds (in other words, buying gold) at intervals of his convenience and accumulate it for 5-10 years. Interest at a nominal rate will be paid on the deposit. For the customer, it will work like a systematic investment plan. Banks are expected to customise the scheme to make it more customer-friendly. On their part, banks will buy gold futures to hedge against price variations. IBA is expected to submit a proposal to RBI for approval for the scheme.
2. Over 1,500 Citigroup India employees spread across 35 towns and cities will participate as volunteers in various community initiatives in the country on 18.11.2006, as part of Citigroup's global community day initiative.
3. RBI has unveiled draft guidelines on banks’ exposure to capital markets. The guidelines cap a consolidated bank’s aggregate exposure to capital markets at 40% of its consolidated net worth of March 31 in the previous financial year. The revised guidelines will be effective from January 1, 2007. But under the ceiling, the aggregate direct exposure by way of a bank’s investment in capital markets has been capped at 20% of its consolidated net worth. The aggregate stand-alone exposure of a bank to capital markets has been retained at 40% of its net worth.
4. Of the three 100% government owned banks, which were slated to hit the market during the current fiscal, Indian Bank and United Bank of India may delay their plans to launch their IPO.
5. Asian Development Bank has reduced commitment fees for project loans, a key demand of India, as part of the series of enhancements it introduced in the Libor-based loan, ADB’s main lending instrument.
6. Given the non-reliance of the government to external financing to finance domestic debt, India is expected to be less affected by global imbalances.
7. RBI has sought to further tighten the flow of bank funds into the capital market. In a big blow to broking firms and corporates, the central bank’s proposals will reduce access to bank funds against security of equity and equity-linked investments. The entire banking system cannot lend more than Rs 10 lakh for subscribing to shares in an IPO to any single borrower be it an individual, a partnership firm or a company. Any general purpose borrowing from banks by an individual or a corporate against security of equity investments is also proposed to stifled. Any single borrower can borrow from the banking system against security of such investments only up to Rs 10 lakh if the security is held in physical form and only up to Rs 20 lakh if the security is held in demat form.
8. An internal study by the RBI is understood to have found out that most of the foreign exchange inflows into India from NRIs and portfolio investments are emanating from tax-haven countries. The study further aims at trailing the origin of the funds to the tax-haven countries. The findings are part of the overall study by the RBI to track the origin and utility of funds flowing into the country under the broad umbrella of FDI.
2. Over 1,500 Citigroup India employees spread across 35 towns and cities will participate as volunteers in various community initiatives in the country on 18.11.2006, as part of Citigroup's global community day initiative.
3. RBI has unveiled draft guidelines on banks’ exposure to capital markets. The guidelines cap a consolidated bank’s aggregate exposure to capital markets at 40% of its consolidated net worth of March 31 in the previous financial year. The revised guidelines will be effective from January 1, 2007. But under the ceiling, the aggregate direct exposure by way of a bank’s investment in capital markets has been capped at 20% of its consolidated net worth. The aggregate stand-alone exposure of a bank to capital markets has been retained at 40% of its net worth.
4. Of the three 100% government owned banks, which were slated to hit the market during the current fiscal, Indian Bank and United Bank of India may delay their plans to launch their IPO.
5. Asian Development Bank has reduced commitment fees for project loans, a key demand of India, as part of the series of enhancements it introduced in the Libor-based loan, ADB’s main lending instrument.
6. Given the non-reliance of the government to external financing to finance domestic debt, India is expected to be less affected by global imbalances.
7. RBI has sought to further tighten the flow of bank funds into the capital market. In a big blow to broking firms and corporates, the central bank’s proposals will reduce access to bank funds against security of equity and equity-linked investments. The entire banking system cannot lend more than Rs 10 lakh for subscribing to shares in an IPO to any single borrower be it an individual, a partnership firm or a company. Any general purpose borrowing from banks by an individual or a corporate against security of equity investments is also proposed to stifled. Any single borrower can borrow from the banking system against security of such investments only up to Rs 10 lakh if the security is held in physical form and only up to Rs 20 lakh if the security is held in demat form.
8. An internal study by the RBI is understood to have found out that most of the foreign exchange inflows into India from NRIs and portfolio investments are emanating from tax-haven countries. The study further aims at trailing the origin of the funds to the tax-haven countries. The findings are part of the overall study by the RBI to track the origin and utility of funds flowing into the country under the broad umbrella of FDI.
