Bank of India increases deposit rates
Mumbai: Public sector bank, Bank of India has hiked interest rates on domestic rupee deposits by 25-50 basis points on certain maturities.

This is the first among public sector banks to have done so. These new rates come into effect from November 10.
The bank has hiked rates in most of shorter tenor deposits by 50 basis points, while in case of longer tenor the hike is to the effect of 25 basis points.

For maturity periods ranging from 7-14 days the interest rates on a minimum deposit of Rs1 lakh is 3.50 per cent. The interest rate for maturity period of 15 days to 45 days is 4.50 per cent; for 46 days to 364 days - 5 per cent; 1 year to less than 2 years - 5.25 per cent; two years to less than 3 years - 5.25 per cent; 3 years to less than 5 years - 5.50 per cent and 5 years and above - 5.75 per cent.
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Government considers setting pension funds' floor capital at Rs 50 crore
New Delhi: The interim Pension Fund Regulatory and Development Authority (PFDRA), is considering setting Rs50 crore as the floor limit for pension fund managers, said senior finance ministry officials.

The interim PFRDA in its discussion paper has proposed Rs50 crore as the minimum paid-up capital requirement for PFMs. This would be in between the Rs10-crore minimum capital proposed for mutual funds and Rs100 crore for insurance companies, officials said.
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IRDA tries to create level playing field
Hyderabad: For the first time ever the Insurance Regulatory and Development Authority (IRDA) will turn down the sovereign guarantee offer made by the centre to help meet the required solvency margin of the Life Insurance Corporation of India (LIC).

Rao said the rejecting the assurance of the central government was because of the need to create a level playing field in the life insurance segment.

However, IRDA is willing to grant LIC more time to meet the 150 per cent solvency margin, said Rao.

The move may mean that policyholders may have to be content with a lower level of payouts in days ahead.

The solvency margin is calculated by adding up 4 per cent of the reserve (that is the liabilities the insurance company may face) and 0.3 per cent of the amount at risk.
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Banks may be exempt from agent norms
Mumbai: The Insurance Regulatory Authority of India (IRDA) may exempt banks from having to adhere to its draft guidelines regarding corporate agents and to place proper checks on the industry.

According to IRDA, insurance companies do not have proper control over corporate agents due to which some of them have issued policies they are not eligible to. The insured are thus getting confused between the insurer and the intermediary, and do not know whom to turn to. Effective disclosure of terms and conditions are also lacking.

IRDA said there will be relaxations with regard to banks as compared to other corporate agents, as banks cannot get elusive. They have huge staff, who are also more responsible.
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Limit on foreign banks' local acquisitions to be eased
New Delhi: The government is considering doing away with the proposed 10-per cent-per year limit for acquiring a stake in Indian banks by foreign banks.

Finance minister P Chidambaram's proposal last month that the government was considering a proposal to allow foreign banks to acquire 10 per cent stake in local private banks a year has attracted criticism on the grounds that a pre-determined 10 per cent acquisition limit every year will cause unhealthy speculation in the market.

The government is proposing further flexibility to foreign banks to take over domestic private banks, by relaxing the proposed 10 per cent annual limit on acquiring the shares of the latter.
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