Rupee down five - Securities fall as well
Mumbai: The rupee shed some gains on Monday as it closed weaker by around 5 paise at 45.42/43 against the dollar against its previous closing at 45.37/38 per dollar on Friday.

Forwards Market: The six-month premia ended higher by 27 basis points to end at 2.60 per cent, while the one-year premia surged higher to 2.14 per cent (1.95 per cent).

G-Secs: The popular 11-year benchmark 7.38 per cent 2015 paper closed at Rs103.20 at a yield of 6.95 per cent. The 10 year benchmark 7.37 per cent 2014 ended at Rs102.90 while actively traded 6.65 per cent 2009 paper closed at Rs101.01.

Call Rates: Tight, with deals struck at 5.00 per cent levels, with the range being 4.75-4.90 per cent.

CBLO Market: 131 trades worth Rs4,779.85 crore were transacted in the rate range of 4.75-5.00 per cent.
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RBI: Banks must ensure immediate credit of cheques
Mumbai: The Reserve Bank of India has asked banks to formulate comprehensive and transparent policies, for the immediate credit of outstation cheques. In a circular to commercial banks, the apex bank has also asked them to set a time frame for the collection of local and outstation financial instruments and interest payment for delayed collection.

The central bank has said, that while it has been issuing instructions, in these areas any prescription of a single set of rules may not be appropriate. Therefore, banks have been encouraged to formulate their own policies, taking adequate care to ensure that the interests of the small depositors are fully protected.

The policy should clearly lay down the liability of the banks by way of interest payments due to delays for non-compliance with the standards set . Compensation by way of interest payment, where necessary, should be made without any claim from the customer.
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RBI: 91-day T-bill auction
Mumbai: The Reserve Bank of India has announced the auction of 91-day treasury bills aggregating to Rs2,000 crore to be held on November 3.

Of this amount, Rs1,500 crore will be auctioned under the Market Stabilisation Scheme (MSS), while Rs500 crore will be under the regular auction calendar, said a press release.

The auction will be conducted using "Multiple Price Auction" method, said the release. The allocation to non-competitive bidders will be outside the notified amount, at the discretion of the bank.

Date of submission of tenders and result announcement is November 3, while payment by successful bidders will be on Friday, said the release.
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BoI to take on 7-14 day deposits
Mumbai: Bank of India has decided to accept domestic rupee term deposits below Rs15 lakh in maturity bucket of `7-14 days', effective November 1.

The interest rate on such deposits would be 3 per cent per annum, and the minimum amount to be placed would be Rs1 lakh, said a press release.

Earlier, while the minimum maturity of wholesale domestic term deposits was seven days, the maturity for `retail' domestic term deposits continued to be 15 days.

In order to provide uniformity in the tenor of the term deposits, the RBI had recently suggested in its mid-term review of the annual policy statement 2004-05, that banks can at their own discretion, reduce the minimum tenor of retail domestic term deposits under Rs15 lakh, to seven days from 15 days.

Until recently, the lowest maturity available for domestic term deposits with most banks was the `15-45'-day category, which attracted an interest rate of between 3.75 per cent and 4 per cent across various banks.
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SBT revises FCNR rates
Thiruvananthapuram: State Bank of Travancore (SBT) has revised interest rates for FCNR term deposits in dollar, pound sterling and euro for various periods. The new rates are effective from Monday.

The revised rate for US dollar deposits of one year to less than two years is 2.30 per cent; for two years to less than three years 2.70 per cent; and for three years 3.02 per cent, according to a statement from the bank.

The rates for pound sterling deposits of similar periods are 4.77 per cent, 4.71 per cent and 4.74 per cent. The corresponding rates for deposits in euro are 2.06 per cent, 2.33 per cent and 2.58 per cent, respectively.

The interest rates for RFC deposits have also been revised to 2.30 per cent, 2.70 per cent and 3.02 per cent for the corresponding periods as above. The interest rate for a period of six months to less than one year remains at one per cent.
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