ICICI will have to treat securitisation deals as loans
Mumbai: The Reserve Bank of India has directed financial institution ICICI Ltd to treat all its securitisation deals as structured loans. The central bank feels that securitisation deals by ICICI involved recourse to the originator, and as such could not be treated as securitisation.

This will mean that the assets will stay in the books of ICICI and its balance sheet is not free to undertake fresh risks. RBI has pointed out that whenever there is a recourse to the originator, the risk continues to be on the books of the institution, which involves earmarking capital for risk-weighted assets.

In securitisation deals, the final holder of the paper should bear all the risk on the instrument.
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DoT notifies 15% revenue sharing
New Delhi: The department of telecommunications has notified that the 15 per cent revenue sharing formula will be in force till such time the Telecom Regulatory Authority of India is able to give its recommendations. The payment will be adjusted once TRAI 's recommendations are implemented.

Financial institutions have been given four months to work out securitisation arrangements towards the funding of telecom projects.
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Panels to study payment, settlement system
Mumbai: The National Payments Council, set up by the Reserve Bank of India, has constituted five permanent task forces to study the various issues relating to the setting up of a modern payment and settlement system in the country. Each task force will be headed by a member of the council and assisted by the concerned department head in RBI.

The National Payments Council was set up in May 199 to guide the design and development of an efficient payment and settlement system in the country.
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Corpbank Homes to expand equity base
Bangalore: Corpbank Homes Ltd plans to expand its equity base by at least 30 per cent in the next financial year. The company plans to offer an equity stake to a foreign partner, K.A. Kamath, managing director, said.

Since the company started its operations in July 1998, it has sanctioned housing loans worth Rs 16.96 crore and disbursed Rs 9.79 crore.
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Engage outside agencies for Y2K audit, banks told
Mumbai: The Reserve Bank of India wants banks to engage outside agencies to perform Y2K compliance audit to ensure that their systems are well secured against the year 2000 problem.

S.P. Talwar, deputy governor of the RBI, said at a conference on Information Technology for Banking and Financial Institutions that 90 per cent of banks and 92 per cent of financial institutions had reported Y2K compliance and the remaining should be able to comply by the end of July 1999.
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