Quick View: RBI tightens RRBs gold lending norms

Updated: Jun 26 2013, 10:16am hrs
The Reserve Bank of India tightened restrictions on gold lending on Tuesday for regional rural banks and said the curbs extend also to units of gold exchange-traded funds (ETF) and units of gold mutual funds, to tame demand for the yellow metal and rein-in a record high current account gap. The RBI said regional rural banks should not lend against gold jewellery, gold ornaments and gold coins weighing above 50 grams, a norm already applicable for all other banks.

REC invites bids to raise R500 crore

Rural Electrification Corp has invited bids to raise R500 crore ($83.64 million) through 80-days commercial paper, two sources with direct knowledge of the deal said. The bond sale by the state-run power financing company is rated A1+ by CARE, they said.

RBI nod to Muthoot for white label ATMs

Reserve Bank of India (RBI) has given Muthoot Finance permission to set up white label ATMs (WLAs) in India. Last year, the central bank had decided to allow non-banks, whose net worth is at least R100 crore, to set up and operate ATMs to increase the availability and also penetration in tier-III to tier-VI towns and villages. RBI had issued the detailed guidelines for WLAs in June, 2012. Last year, Muthoot had told FE that it would invest R250-300 crore in the next three years to set up 7,000 WLAs across the country. Muthoot had got shareholders approval to enter the WLA business on December, 2012.

L&T GI launches MediCash Card

Private general insurer L&T General Insurance launched a card to facilitate cashless claim authorisation under the brand name MediCash Card. The card is launched in association with E-Meditek Global and help reduce the authorisation time significantly. The MediCash card allows instant authorisation and on-the-spot payment, making the crucial period of wait almost negligible, said L&T Insurance CEO & whole-time director Joydeep Roy. This card will reduce the time required to get cashless approval compared to the existing approval models, Roy said.

Harshavardhan on SBH board

Harshavardhan Madabhushi has been appointed director in State Bank of Hyderabad board for a period of three years. He currently holds the position of chief manager at Head Office.

Nabard gives R112 cr for PACS conversion

Nabard has sanctioned R112 crore to 183 primary agriculture cooperative societies in Andhra Pradesh for their conversion into multi-purpose service societies. "Nabard sanctioned funds for construction of bank lockers for PACS," chief general manager K R Nair told reporters here. He said Nabard has sanctioned R1.04 crore for 6 PACS for construction of godowns and R58.50 crore to 29 PACS for fish feed in Krishna district.