Bond prices surge - Rupee firms up
Mumbai: The rupee closed marginally stronger at 46.2650/2750 as against its close at 46.29/30 on Thursday.

Forwards Market: The six-month closed at 1.81 per cent (1.88 per cent) and the twelve-month at 1.56 per cent (1.68 per cent).

G-Secs: Surged by about Rs 2 in some long-tenor papers on Friday. The 8.35 per cent 2022 Government stock surged by over Rs 2 to close at Rs 114.10. The 10-year benchmark 7.37 per cent 2014 paper moved up by about 20 paise to close at Rs.110.35 at the YTM (yield to maturity) of 5.94 per cent. The closing yield for 8.07 per cent 2017 paper was at 6.3 per cent whereas it was 7 per cent for the 8.35 per cent 2022 paper. The yield difference was also about 60 basis points between the 8.35 per cent 2022 paper and the 11-year benchmark 7.38 per cent 2015 paper.

Call rates: In the range of 4.4-4.5 per cent in the inter-bank market

CBLO Market: 108 trades were transacted worth about Rs.3,300 crore.
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RBI: Asks for scrutiny of Demand and Time Liabilities
Mumbai: The Reserve Bank of India has asked all banks to immediately undertake a special scrutiny of the computation of their demand and time liabilities (DTL) to ensure that these are worked out strictly in tune with the extant instructions on the subject.

The RBI directive follows detection of deficiencies in the computation of DTL by some banks. Correct computation of DTL is important as maintenance of CRR (cash reserve ratio) and SLR (statutory liquidity ratio) by banks were calculated on the basis of DTL.

The Central bank, in a circular to all scheduled commercial banks said that internal or external auditors might be engaged for scrutiny. The banks must arrange to submit revised forms detailing deficiencies observed in the computation of DTL/NDTL based on the outcome of the scrutiny.
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RBI to go for ISO 9000
Mumbai: The central bank is going in for an improvement in its counter-related services and currency management services. The regulator for the banking sector also wants to streamline its process of regulation and supervision and accordingly the apex bank will go in for an ISO 9000 certification for its currency management system.

The currency management function of the RBI aims at ensuring adequate availability of notes and coins and improving the quality of notes in circulation. RBI performs currency operations through 19 regional offices and a wide network of currency chests and small coin depots spread across the country.

The central bank is currently putting in place integrated computerised currency operations and management system in the issue departments of regional offices and the department of currency management at the Central office.
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Bank deposit insurance scheme to be reviewed
Mumbai: The RBI plans to review the 'deposit insurance scheme' and issues relating to its coverage and premium shortly as revision in the rates are due next year. The review would also examine the international experience and practices, which could be introduced in the country.
As per the scheme, every depositor of an insured bank is entitled to repayment of deposits subject to a ceiling of Rs.1 lakh when the banking entity is liquidated or amalgamated.

In the wake of the failure of many co-operative banks in the recent past, coupled with other crises in the banking sector, there has been a demand to hike the ceiling on the insurance, sources said. Most banks feel that they are taking on the burden of co-operative banks and want to pay the premia on a risk-related basis, as was recommended in the Jagdish Kapur report.
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