Money market: Rupee declines - securities dull
Mumbai: The rupee closed at 43.74/75 against the US dollar on Friday, lower than Thursday's close of 43.71/71.50.

Forwards market: The 12-month premium closed at 1.47/50 (1.45) and the 6-month premium closed at 1.70 (1.67).

G-Secs: The 7.38 per cent 10-year benchmark paper closed at Rs105.67 (6.62 per cent YTM) on Friday, against Thursday's close of Rs105.60/65 (6.62 per cent YTM). The 10-year benchmark had opened at Rs105.75 (6.61 per cent YTM).

Call Rates: The inter bank rates opened at 4.25-4.60 per cent and closed at 4.25-4.50 per cent.

CBLO market: 121 trades aggregating Rs3431/45 crore were put through in the rate range of 1.25 to 4.60 per cent.
Back to News Review index page  

RBI: Some UCBs to be brought at par with commercial banks
Mumbai: The Reserve Bank of India proposes to treat urban co-operative banks, with deposits of over Rs50 crore, at par with commercial banks for regulatory purposes. However, this would be subject to the existing relaxations that are in force.

In a draft vision document on urban co-operative banks (UCBs) released for public comment, the central bank said UCBs having one branch with deposits of less than Rs50 crore should be subjected to simpler regulatory and supervisory requirements.

Such banks are to be given an additional three years to classify non-performing assets based on 90 days' delinquency norm. They would be required to build adequate provisions during this period to transit to the 90-day norm at the end of three years.

The vision document also proposes to set up a State-level task force on UCBs comprising officials from the RBI, the State Governments and representatives from the sector in five States with high concentration of UCBs - Maharashtra, Gujarat, Karnataka, Andhra Pradesh and Tamil Nadu.

The vision document intends to put in place a mechanism that would address the problems of dual control, a consultative arrangement for identifying weak but potentially viable entities, the apex bank said. It would also identify unviable entities and provide timely exit routes, it added.

The document suggests the signing of a memorandum of understanding between the RBI and the State Governments to ensure that the difficulties caused by dual control are suitably addressed.
Back to News Review index page