25 paise? Not acceptable

KOCHI: The announcement of the Reserve Bank of India to withdraw 25 paise coin has raised confusion among the people with many refusing to accept it. The worst hit are the bus operators who have to bear the brunt of this announcement.  The bus conductors are facing problems to convince people that the coin is still in circulation. The RBI has made it clear that the 25 paise coin is still a legal tender and will continue to remain in circulation until June 29.  Sources in the RBI said that refusing to accept the coin would be a crime. They said the RBI had announced the decision much ahead, and it had specifically stated that the date on which it would cease to function would be announced later. “This is a big headache. We have to take the wrath of the public for no reason,” a bus conductor said. “Some passengers can be convinced easily. But a few insist for higher denomination coins.”  The RBI officials have further said that the 25 paise coins can be exchanged at listed banks after June 29.

HC asks RBI report on banks’ malpractice

BANGALORE: Karnataka High Court on Tuesday directed the Reserve Bank of India (RBI) to submit the report on some of the banks deducting Rs 750 from customers' accounts for not maintaining quarterly balance.A petition had been filed in the court that some banks were wrongfully deducting Rs 750 from the accounts of customers who failed to maintain quarterly balance. The petition stated the bank was exempting those who draw more than Rs 1 lakh at a time if their quarterly balance was not maintained. The petition said only the poor found it difficult to maintain the minimum balance. The petition also said that some banks were charging penalty to customers even though they were repaying their loans in time. According to the RBI's report dated November 15, 2010, two banks have collected more than Rs 100 crore as penalty. On Tuesday, Karnataka High Court's division bench headed by Chief Justice J S Khehar directed the RBI to submit its report on the issue before the next hearing, which is on July 5. This came after the RBI requested the court for more time to submit the report. Earlier the RBI had submitted before the court that it had set up a special committee to study the issue and would submit the report in the court.

Meet of Supreme Audit Institutions begins

KOCHI: The Global Working Group of Supreme Audit Institutions (SAIs)from 19 countries is meeting at Kumarakom from March 21 to March 23. Organised by the Office of the Comptroller and Auditor-General of India, the global group meets annually in different member-countries, with the last meeting held in Sydney in March 2010. The conference addresses issues of contemporary relevance and include topics such as ‘Improving communication between SAIs and their stakeholders, capacity-building of SAIs, auditing third-party service providers and fallout of the global financial crisis. The RBI Governor will speak on ‘India and the Global financial crisis- collateral damage and response’.

SBI’s kiosk opened in Warangal village

HYDERABAD: As part of the RBI's financial inclusion programme, State Bank of India (SBI) said its regional office in Warangal has so far appointed 38 business correspondents in the district. “Several measures are being taken by the Reserve Bank of India under financial inclusion programme with an aim to deliver the financial services at an affordable cost to the vast sections of disadvantaged and low income groups especially in rural areas,’’ said A S Rao, regional director, RBI. Addressing the gathering after inaugurating one of the SBI's kiosk in Veeraram village, a predominatly tribal village with low literacy rate today, he said RBI has chalked out an ambitious plan to cover about one lakh villages over the next three years. According to SBI, since the technology adopted for the kiosk platform is robust and foolproof, the government of India and RBI has envisaged the financial inclusion programme as a successful tool in implementing the welfare programmes effectively as the end use of funds is ensured to reach the targeted beneficiary. “The rural people will receive the payments from government directly through their accounts in a cost-effective and easy way. As the finger print-based biometric technology is being used, the system is foolproof and safe to customers. Account opening in this model is simple and easy,” Ashwini Mehra, general manager, SBI said. Giving details about the features and benefits for the rural people, Mehra said, the bank has been issuing smart cards for account-holders and that the financial inclusion programme will be aligned with UID project -- Adhaar' at a later stage. Meanwhile, SBI's regional director distributed loans worth Rs.1 crore to 40 SHGs in Maripeda mandal in Warangal district.