Returns on forex assets down to 2.8%
Mumbai: The returns on India's foreign currency assets during 2002-03 (July-June) had fallen to 2.8 per cent from 4.1 per cent in the previous year. This excludes the capital gains less depreciation. The fall, according to the Reserve Bank of India, is mainly due to lower international interest rates.

According to a report on the foreign exchange reserves released by the RBI, as on September 30, 2003 out of the total reserves of $91.136 billion, $87.213 billion was deployed in foreign currency assets. Of the remaining, $31.740 billion was invested in securities, $39.635 billion in deposits with other central banks and Bank for International Settlements (BIS), $15.838 billion in deposits with foreign commercial banks, $4 million in special drawing rights and $3.919 billion in gold and gold deposits. This report will now be a bi-annual publication with a three-month lag based on figures of March 31 and September 30.
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Softer loan regime for tractor sector
New Delhi: Tractor companies have welcomed the farmer-friendly policies indicated in the Interim Budget on Tuesday, stating that it would result in higher credit availability with the farmers. The industry has specifically displayed optimism about the Government's intent to further reduce interest rates on farm loans and to simplify the loan-procuring process by providing for more reasonable collateral terms. During the Budget speech, Finance Minister Jaswant Singh said: "I have been urging the Indian Banks Association to further lower the interest rates for agricultural purposes. Some public sector banks have already done so. I am confident that other banks will also respond by offering loans at rates lower than the prevailing rates". In July 2003, the rate of interest for crop loans by public sector banks was reduced to nine per cent.

Banks have also been "advised" to assess individual credit-worthiness and not to insist on additional collateral through a mortgage of the entire land holding. That is, collateral security should be proportionate to the value of the loan. According to R C Jain, President of the Tractor Manufacturers Association (TMA), both the steps would help the tractor industry, since at least 95 per cent of the tractors bought by farmers are financed. "In addition, collaterals have been another issue affecting loans for tractors, as the farmer's entire land is kept as collateral when he takes a loan to buy a tractor", he said.
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Hotel federation for joint cover scheme
Kolkata: The Federation of Hotel & Restaurant Associations of India (FHRAI) has taken the initiative to convince its members to opt for a "joint insurance" policy. All the hotels will be singly and severally covered under this policy and for any incident involving public liability, a participating hotel would be entitled to receive the claim. In such a situation, FHRAI examines, the over all premium for each hotel will be much less than what it will have to pay for individual insurance policy.

The federation is understood to have informed its members that it is working out the details of the scheme and will be in touch with the Department of Tourism for its approval on this procedure. The members have been asked to send their views on the matter. The Department of Tourism has recently amended the requirement of Public Liability Insurance coverage, stipulating that 5-star and 5-star deluxe hotels should have annual insurance liability of Rs 4 crore, while in the case of 4-star, it should be Rs 4 crore. The 3-star, 2-star and 1-star categories should have liabilities of Rs 3 crore and Rs 1 crore respectively.
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Hospitals ask govt for full risk cover to patients
Mumbai: Hospitals have written to the central government asking that insurance companies introduce full insurance coverage to patients at extra cost. This will help do away with the confusion that has come about since the introduction of cashless hospitalisation treatment. At the same time, the medical fraternity and hospital associations have also taken up their cause with the Insurance Regulatory and Development Authority (Irda) against payments from insurance companies being routed through third-party administrators (TPAs), a business newspaper has reported.

Hospitals fear that they are facing enormous business risk when dealing with TPAs, many of whom do not have much of a net worth. "Direct payments to hospitals from insurance companies will help mitigate this risk completely," said M L Bhakta, president of the Association of Hospitals. Since the introduction of TPAs as intermediaries, many hospitals have been bleeding as they have not been paid for almost a year.
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