RBI to take 'measured' steps to contain inflation
Mumbai: The Reserve Bank of India has said it will take "measured" steps to contain the rise in price level. It further assured that the spurt in the yields of government papers would not impact the Centre's borrowing.

As for the impact of rise in yields on the borrowing programme, the bank says they have not found any difficulty till date and there was ample liquidity in the system.
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Forex reserves move up by $1.01 billion
Mumbai: After witnessing a downward trend for the past two weeks, India's foreign exchange reserves rose by $1.01 billion to cross the $119 billion mark during the week ended August 6. The Forex reserves had witnessed an outflow of about $2.75 billion during the previous two weeks.

The foreign exchange reserves, during the period under review, rose from $1,18,319 million to $1,19,336 million.The foreign currency assets also registered a rise of $951 million at $1,13,918 million, according to the RBI's weekly statistical supplement. The RBI's intervention to mop up dollar and fresh inflows led to this growth in reserves.

Gold reserves rose by $66 million to $4,123 million while the special drawing rights were static at $2 million, the central bank said. India's Reserve Tranche Position with the International Monetary Fund (IMF) stood at $1,293 million.

Loans and advances to the Centre rose by Rs.7, 567 crore to Rs.7, 579 crore while that to state governments dropped by Rs.936 crore to Rs.3, 162 crore, it added.
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RBI allays fears about banking system
Mumbai: Reserve Bank of India has asserted that the banking system in the country was sound and that depositors should not panic. RBI officials have reacted to reports about the weak financial health of some co-operative banks.

Bank officials made it clear that there was no room for people to have any apprehensions about the soundness of the system.

This reassurance has come in the wake of panic withdrawals leading to RBI freezing the business of city-based Maratha Mandir Co-operative Bank Ltd (MMCBL) and imposing a ceiling of Rs.5, 000 per account on withdrawals.

MMCBL was the second bank after South Indian Co-operative Bank Ltd to face such a restriction within a week.

There were also rumours about the financial health of Punjab & Maharashtra Co-operative Bank Ltd (PMCBL), where depositors queued up at three branches to withdraw their cash. RBI had clarified that PMCBL was well managed and there was no need for depositors to panic.
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SBI offers Onam Bonanza
Thiruvananthapuram: State Bank of India (SBI) has cut interest rates on housing loans and car loans during the forthcoming Onam festival period. The reduced rates would be applicable only in Kerala, and only for those loans sanctioned between August 16 and 28.

Housing loans sanctioned during the period would carry an interest rate of seven per cent and car loans, eight per cent. Builders and automobile dealers will also be brought under one roof during the event. There will be special counters at each venue of this event to sanction loans on the spot.
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Syndicate Bank eases norms for education loans
Thiruvananthapuram: Syndicate Bank has relaxed norms for its education loans, according to a bank spokesman.

No collateral or third party guarantee would be required for education loans up to Rs.4 lakh. For loans exceeding Rs.4 lakh and up to Rs.7.5 lakh, only third party guarantee and guarantee of the parent or guardian will be required. Standard norms will apply for loans beyond Rs.7.5 lakh.

The loan scheme covers all courses from school education to super-speciality studies. It offers need-based finance for the entire spectrum of education expenses. For courses within the country, the loan limit is Rs.7.5 lakh and for those outside, Rs.15 lakh.
The interest rate is 10 per cent for loans up to Rs.4 lakh and 9.5 per cent for those above Rs.4 lakh.
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