Tuesday, May 29, 2012

RBI asks co-op banks to formulate norms for conversion of FDs

Reserve Bank on Monday permitted cooperative banks to formulate policies to check the practice of premature conversion of fixed deposits into other deposit schemes by customers with a view to obtaining higher interest rates. "In order to facilitate better Asset Liability Management (ALM), it has been decided to permit banks to formulate their own policies towards conversion of deposit with immediate effect", RBI said in a notification..........

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