The Reserve Bank of India asked non-banking financial companies (NBFCs) to replace post-dated cheques issued to them by customers with new standardised cheques with improved security features. NBFCs accept post-dated cheques from their customers for future monthly installment payments. For the purpose of standardisation and enhanced security features, the banks have been told by RBI to migrate to the 'CTS 2010' standard by December 31.
Oz holds key rate, fuels currency gain
Australias central bank kept its benchmark interest rate unchanged at a developed-world high as the global economy stabilises and domestic inflation picks up, driving the local currency to a five-week high. Governor Glenn Stevens and his board left the overnight cash-rate target at 3.25%, Reserve Bank of Australia said in a statement in Sydney on Tuesday. The move surprised economists, with 20 of 27 surveyed by Bloomberg News predicting a cut to 3%.
RBI allows Sidbi to borrow via forex loan
The Reserve Bank of India has allowed Small Industries Development Bank of India (Sidbi) to borrow via forex loans and lend to micro, small and medium enterprises (MSME) but with some riders. The RBI said Sidbi must give directly to an MSME either a rupee loan or a forex loan.
IOB plans branches in China, Vietnam
Indian Overseas bank said on Tuesday it has outlined plans to open full-fledged branches in China and Vietnam. It is also going in for tie-up with more exchange offices with a view to expanding its business abroad, a top Bank official said. The Bank has already applied to RBI to upgrade its representative centre at Dubai to a full-fledged branch. It also plans offices in China and Vietnam, said IOB CMD M Narendra.