Rupee falls sharply
Mumbai: The rupee closed at 44.21/22 against the dollar ending fourteen paise lower than its previous close at 44.07/08.

Forwards Market: The six month forward closed at 1.45 per cent (1.62 per cent) while the twelve-month finished at 1.12 per cent (1.22 per cent).

G-Secs: The benchmark 7.38 per cent 2015 paper closed at an yield of 6.70 per cent, at a price of Rs105.06. Actively traded 7.55 per cent 2010 paper finished at 6.42 per cent before ending at Rs105.08.

Call Rates: In the range of 4.50-4.75 per cent.

CBLO Market: 121 trades worth Rs4,264.50 crore were transacted in the rate range of 4.50-4.80 per cent.
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RBI: Foreign banks to place priority-lending shortfall with SIDBI
Mumbai: The Reserve Bank of India has said that foreign banks operating in India should place the amount of shortfall in their priority sector-lending obligation with SIDBI for a tenure of three years. The funds placed with SIDBI will have a graded interest rate structure linked to the Bank Rate, the central bank has said in a notification to foreign banks here today.

The RBI has said the move is in keeping with the recommendations made by the Ganguly Working Group in regard to evaluation of methods of utilisation of deposits made by foreign banks with SIDBI for shortfall in their priority sector obligation.

The overall shortfall target, which includes 32 per cent of net bank credit, 10 per cent SSI lending and 12 per cent export finances, will carry the rate of interest on the entire deposit to be made with SIDBI on an annualised basis. SIDBI will pass on the lower interest rates to the borrowers, RBI has said.

The scheme would be made effective from the financial year 2005-06 so that foreign banks have adequate time to plan deployment of their resources, according to the central bank.
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RBI: On-tap sale for four States closed
Mumbai: The Reserve Bank of India has said that the 'on-tap' sale in respect of the remaining four State Governments - Bihar, Jammu & Kashmir, Orissa and Uttar Pradesh - has been closed.

The sale of 7.32 per cent State Development Loan, 2014 was closed in respect of 19 States on Wednesday. Payment will be made by the allotees on December 10.
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RBI relaxes service area norms for banks and RRBs
Mumbai: Commercial banks and regional rural banks (RRBs) would, henceforth, be free to lend in any rural and semi-urban area and borrowers would have the choice of approaching any branch for their credit requirements.

In a bid to give easy access to rural borrowers for institutional credit from any bank of their choice at a competitive price and to provide banks, public and private, with a level-playing field, the Reserve Bank has relaxed the service area norms.

In a notification to commercial banks and RRBs here on Thursday, the central bank has said that the allocation of villages among rural and semi-urban branches of banks will, however, continue to be applicable for lending under Government-sponsored schemes.
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Prudential Bank depositors to be reimbursed up to Rs1 lakh
Hyderabad: The Reserve Bank of India has announced that the depositors of the Prudential Bank would be paid for amounts of up to Rupees one lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

In a press release here on Thursday, the RBI has said that the apex bank has cancelled the licence of Prudential Bank and the State Government has appointed a liquidator. Further, the depositors were advised to approach the RBI Chief General Manager here, Dr Deepali Pant Joshi, for clarifications, if any, on 040-23234875 or 098490-22318.
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ING Vysya Life unveils unit-linked plans
Bangalore: ING Vysya Life Insurance has announced the launch of two unit-linked insurance plans. The company said that strong economic fundamentals and maturity among customers to understand risk factors has created unprecedented interest in unit-linked insurance products.

The company said that the products had been designed to benefit all segments of customers and was not aimed at exploiting the high net worth younger generation with larger disposable incomes. The two products were designed to enroll customers from the age of eight to 65 years.

The two unit-linked insurance products - Freedom Plan and Future Perfect - have flexibility in payment of premium, planning investments and withdrawals with life protection over a policy period ranging from five to twenty five years.

ING Vysya Life Insurance, a joint venture between ING Insurance International BV of the Netherlands and Vysya Bank, had closed the last fiscal (2004) with a premium income of Rs100 crore.
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