25 paise and below coins not acceptable from June 30

Come June 30, 50 paise will be the minimum coin accepted in the markets as all denominations below it will cease to be legal currency.  "From this date, these coins (denomination of 25 paise and below) shall cease to be a legal tender for payment as well as on account," the Finance Ministry said in a statement today.  It further said that the minimum denomination coin acceptable for transaction will be 50 paise from that date.  Also, the entries in books of accounts, pricing of products, services and taxes should be rounded off to 50 paise or whole rupee from that date.  "The procedure for call in shall be notified separately by the Reserve Bank of India," it added.

Allahabad Bank launches mobile banks in Jharkhand

Allahabad Bank Thursday launched mobile bank van services in Jharkhand to target villagers. J.P. Dua, CMD of Allahabad Bank, flagged off a mobile bank van from the bank's Ranchi zonal office. It is the first bank to start such a service in the state. 'It will function like a full bank where people could deposit and withdraw cash. It will function in 12 villages of Dumka district,' a bank official told IANS. Reserve Bank of India Governor D. Subba Rao was in Jharkhand early this month and during his visit he assured the state government about expanding bank facilities.

We have no solution for MFIs who have been hit: RBI

The Reserve Bank of India (RBI) on Thursday made it clear that it has no solution for Micro finance Institutions that have been hit, but said the Malegam Committee may look at "grey areas" in their regulation.  RBI Deputy Governor K C Chakrabarty said MFIs are in the business of taking money and giving loans and if people do not pay back, RBI has no solution for it. "People have to pay back money to the lender who has given the money.If they don't pay back, we have no solution," he told reporters in response to questions after inaugurating "Grameena Vikas Kendra" (branchless banking unit) of Corporation Bank at Mallohalli in the Bangalore district.

No RBI approval needed for bank branches in North-East: Tripura minister

The Reserve Bank of India (RBI) has relaxed norms for setting up bank branches in North-East India and no prior approval of the apex regulatory body is required in this regard, a senior Tripura minister said on Thursday. The clarification came during a meeting between RBI Governor D Subbarao and Tripura's Finance Minister Badal Choudhury in Mumbai on Wednesday. Worry was expressed over the gradual fall in the credit-to-deposit ratio in the region. 

SEED bags Indian Bank FI mandate

SEED, India’s largest Banking Correspondent has bagged one of Tamil Nadu’s biggest Financial Inclusion projects from Indian Bank. The smart card based project will reach around 5500 villages earmarked under the Indian Bank’s Financial Inclusion project to offer banking services to the rural population.  The project will help bring an estimated 11.92 lakh households, equaling to around 23 lakh people under the fold of banking services, thus leading to inclusive growth. Tata Consultancy Services (TCS) is the technology partner in the project. he project was inaugurated at Venthoni village near Paramakudi in Ramanathpuram district of Tamil Nadu by Dr. K C Chakrabarty, Deputy Governor Reserve Bank of India. Other dignitaries present at the function were Shri T.M. Bhasin, Chairman & Managing Director of Indian Bank, Shri V Rama Gopal, Executive Director of Indian Bank, and Shri Rajeev Rishi, Executive Director of Indian Bank. 

Inflation always a concern: Deputy Governor K.C.Chakrabarty

The Reserve Bank of India (RBI) Deputy Governor K.C.Chakrabarty said on Thursday that inflation was always a concern, and a pause in rate hikes does not mean a halt.  India's food inflation accelerated to a ten-week high in mid-December on rising prices of vegetables, while the fuel index also rose, adding to inflationary worries in Asia's third-largest economy.

New managers for economy

You could call it a big change of guard in the government’s “econocracy” – or the economic administration. A new set of experts is set to take charge of the macro-economic management next year, touching the central bank, regulatory agencies and a clutch of state-controlled banks that lord over the economy. Finance secretary Ashok Chawla is set to retire on January 31 and Securities Exchange Board of India chairman CB Bhave, will retire a month later. UTI’s asset management company’s chairman and managing director UK Sinha, is set to succeed Bhave. Later, RBI governor D Subbarao’s three-year tenure ends in September but it is not yet known whether he will get an extension. His predecessor YV Reddy had got a five-year term at one go. Bimal Jalan, on other hand, got a two-year extension as RBI governor after his initial three-year tenure had ended before Reddy took over. Government sources, who did not wish to be identified, indicated that commerce secretary Rahul Khullar is tipped to take over as the next finance secretary ahead of the presentation of budget in February. “This would mark a departure from the normal practice of having a same person as the finance secretary through the budget cycle of drafting to presentation,” said an official. Two new RBI deputy governors are set to take charge next year to fill in for Usha Thorat, who retired recently, and Shymala Gopinath who is due to retire in May. OP Bhatt, chairman of State Bank of India, the country’s largest bank, will retire in March. Deputy managing director Pratip Chaudhuri is tipped to take over in his place. This apart, chairmen and managing directors of at least seven more public sector banks  will retire during 2011. HSU Kamath will join Vijaya Bank as chairman on April 1, 2011, replacing Albert Tauro, while Nagesh Pyadh will replace TY Prabhu as the new CMD of Oriental Bank of Commerce. Besides, Dena Bank CMD D L Rawal is due to retire in October and Ramnath Pradeep’s term as  CMD of Corporation Bank, ends on September 30.

Bankers' Committee asked to prepare annual meeting calendar

With an aim to better supervise the development efforts of Government agencies and banks, the Reserve Bank of India on Wednesday asked State Level Bankers' Committee (SLBC) to prepare a yearly calendar of their meetings by January 15 every year. SLBC and Union Territory Level Bankers' Committee (UTLBC) are required to meet at quarterly intervals. In a notification issued on Wednesday, the apex bank said in recent times these meetings have become irregular and many a times the agenda was not circulated in advance.

NHB wants housing finance cos to take stock of their portfolio

The National Housing Bank has asked housing financing companies (HFCs) to take stock of their portfolio and examine the involvement of intermediaries.  National Housing Bank chairman and head RV Verma said: “We met the CEOs of housing finance companies some time ago. These meetings are part of the internal process, wherein we take in details of the quality of loan book disbursed by the company and also to make sure that there are no intermediaries.”

U.S. praises Reserve Bank of India in Iran dispute

The United States Wednesday praised the Reserve Bank of India for reducing its dealings with Iran's central bank, saying the Islamic Republic misuses its financial relationships to support its nuclear program.