CII admits it has made a mistake
New Delhi: The Confederation of Indian Industry has admitted that it has made a mistake in recommending the closure of  three weak banks. CII’s director general Tarun Das said CII is not backtracking on its recommendation as a result of pressure imposed by any member or due to the threat of release of a list of defaulters.

The confederation says it has made a mistake by underestimating the emotion and reaction that the recommendation would trigger off among employees and the management. Mr Das added that the decision to withdraw the recommendation was taken jointly by CII president Rahul Bajaj and chairman of the task force K.V. Kamath after consulting some past presidents. He also said CII has no problem if the list of corporate defaulters is made public.
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RBI advises banks to maintain hard copies
Mumbai: The Reserve Bank of India has advised all the banks to maintain hard copies of all customer accounts, right from 1 December 1999 as a precautionary measure in order to avoid any problems on account of the Y2K bug. The entire banking sector has reported full Y2K readiness at the end of November 1999.

The RBI said the Indian Banks’ Association and the banks are ready to provide statements of accounts to account holders before 1 January 2000 from all the branches of the banks at any time. This will serve as documentary evidence in case of any problems later. The RBI has also ensured that a core staff of banks will supervise the rollover to year 2000, and this exercise will begin from 27 December 1999. Customer support will be available round the clock.
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Tisco threatens to take AIBEA to court
Calcutta: Tata Iron & Steel Company says it will take the All India Bank Employees Association to court for declaring that the company’s managing director J.J. Irani is one of the loan defaulters among members of the Confederation of Indian Industries. Tisco clarified that Dr Irani is not a director on the board of any companies that is a loan defaulter. No Tata group company, including Tisco, is a defaulter.

The AIBEA had released a list of loan defaulters who are members of the CII, claiming that Dr Irani, along with N.N. Kampani, had defaulted on a loan of Rs 25.4 crore from the Industrial Development Bank of India availed of for Powmex Steel of Orissa. Tisco has clarified that Dr Irani has never had any connection with Powmex Steel.
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