Rupee gains three paise
Mumbai: The rupee on tuesday appreciated three paise to close the day at 45.2725/2825 against the dollar. G-sec prices gained by 20-60 paise across maturities.
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RBI mulling rationalisation of small savings schemes
Mumbai: The Reserve Bank of India's advisory committee on administered interest rates is considering the rationalisation of the number of small savings instruments offered by the Government and also the tax treatment on such schemes. According to a press release, in its first meeting held here on Monday under the chairmanship of Dr. Rakesh Mohan, Deputy Governor, RBI, the committee reviewed the progress of implementation of the recommendations of the earlier expert committee on administered interest rates.

As per the recommendations of the earlier committee, the entire proceeds of small savings are being transferred to the State governments. Interest rates on small savings have increasingly been aligned to market interest rates, the release said.
Other members of the committee who attended the meeting, were, Dr. Ashok Lahiri, Chief Economic Advisor, Ministry of Finance, Mr D. Swarup, Secretary (Expenditure and Budget) Ministry of Finance, Dr. Suman Bery, Director General, National Council for Applied Economic Research and Prof. Mihir Rakshit, Director, Monetary Research Project, Investment Information and Credit rating Agency of India.
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RBI: Further easing of current a/c deals
Mumbai: The Reserve Bank of India has further liberalised certain current account transactions, by allowing authorised dealers some categories of remittances in terms of the Foreign Exchange Management Act 2000, without having to obtain prior permission. According to an RBI press release, the categories of remittances eligible under this liberalisation include, remittance by artistes, commission to agents abroad for the sale of residential plots for amounts up to $ 25,000 or 5 per cent of the inward remittance, whichever is higher, and short terms credit to overseas offices of Indian companies. The relaxation will also be applicable for remittance for ads on foreign television where export earnings are less than Rs 10 lakh.
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SBI and Visa offer prepaid foreign travel card
Mumbai: SBI and Visa International have launched the `Vishwa Yatra Foreign Travel Card', which will provide customers global access to cash in the regional currency, at 850,000 Visa ATMs, worldwide. The card will be a US dollar-denominated prepaid travel card. The card is being marketed as a more convenient option for the customer, compared to carrying cash or traveller's cheques. The load on the card ranges from a minimum of $500 to a maximum of $10,000. Although the card is denominated in US dollars, cardholders can undertake transactions in any currency anywhere in the world, except India, Nepal and Bhutan. Cardholders can make free balance enquiries through SBI's ATMs.
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Standard Chartered's new PF plan
Mumbai: Standard Chartered Mutual fund is launching a plan for provident funds, which will carry a feature called "Defined Maturity Date". This will allow PF fund managers to predefine a date for automatic redemption of their units and thus allow better planning of their cash flows. This plan is being launched under the Grindlays Government Securities Fund, and has been initiated to follow up on the recent amendment allowing provident funds to invest in government security funds. The initial public offer for the fund remains open from February 24 to March 17.
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A Rs. 100 crore Turnaround Fund
Hyderabad: Mr. Ramesh Gelli, the former chief of Vysya Bank and the chief promoter of Global Trust Bank, along with associates are seeking to float an exclusive `Turnaround Fund' fund. The fund, planned as a combination of venture capital and term loan, will help genuine entrepreneurs revive projects that are under financial crisis. The fund is claimed to be the first of its kind. Mr.Gelli is of the opinion that the returns would definitely be more encouraging than long-term funding.
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RBI clearing operations hit
Mumbai: As thirty-three banks out of the 113 members of RBI's clearing house refused to participate in clearing operations on Tuesday, the Reserve Bank of India's clearing operations stood disrupted owing to the nation-wide bank strike. With just 61 banks participating only 2,340 instruments were cleared. The issues that were taken up for the strike include the restoration of the "right to strike" to workers, early conclusion of wage revision, opposing the anti-labour policies of the Government, opposing its privatisation moves and demanding one more option for pension.
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