The High Court said when a public examination had been conducted and the student had been given 78% in it, the bank cannot arbitrarily reduce the same to 38 marks and deny education loan
Madurai: Maintaining that guidelines of Union Bank of India for granting education loans was "arbitrary, without rationale and cannot be accepted by any reasonable and prudent man", the Madras High Court has directed the lender to provide Rs15,000 as education loan to enable a student of diploma in mechanical engineering to pursue his studies, reports PTI.
Justice S Tamilvanan, allowing a petition filed by Kumar, father of the student Naveenkumar, said though the student had scored 78% in the SSLC examination, the bank had awarded him only 15 marks for academic performance.
For other parameters, including branch of study, selection process followed by the polytechnic, monthly income of parents, period of stay of the student at the current place, and selection process followed by the polytechnic, the bank had allocated 23 marks.
The student had been informed that he could not be granted the education as he had scored only 32 marks, though he was expected to score 50 out of 100 marks, as per the bank guidelines.
The judge said when a public examination had been conducted and the student had been given 78% in it, the bank cannot arbitrarily reduce the same to 38 marks.
It was clear from the IBA Model Loan scheme that diploma students were eligible for loan. The petitioner's son with 78% was a meritorious student and could not be denied the loan, the judge said.
The student was undergoing a recognised DME course and hence he should be granted the loan. However, though the petitioner had applied for a loan Rs28,000, the maximum limit fixed by the bank was Rs15,000.
The judge directed the bank to sanction the loan within four weeks after verifying testimonials.
Central banks cannot fix economies by themselves and the governments too need to act from the fiscal side and both monetary and fiscal policies have to act in harmony
Mumbai: Reserve Bank of India (RBI) Governor D Subbarao has said there is a need to preserve the independence of central banks as their mandate has expanded in recent times, reports PTI.
"The issue of monetary policy independence has acquired greater potency following the expansion of mandates of central banks and their more explicit pursuit of real sector targets such as growth and unemployment," he said.
Subbarao cited Japan, where there is political pressure on the Bank of Japan to adopt a higher inflation target so as to create more room for growth stimulus, and said the case is "by no means an exception".
His comments come weeks ahead of the RBI's third quarter policy review scheduled for 29th January in which it might go for a cut in interest rates.
Subbarao said government and RBI need to act in harmony as the central banks on their own cannot fix economic woes.
"Central banks cannot fix economies by themselves. Governments need to act too from the fiscal side and monetary and fiscal policies have to act in harmony," Subbarao said.
Welcoming Nobel laureate Joseph Stiglitz at the CD Deshmukh Memorial Lecture, he said the monetary and fiscal policies should "act in harmony" to achieve common goals.
The comment comes in the backdrop of growing instances of apparent divergent views between the RBI and the Finance Ministry on a string of issues, including lowering interest rates and issuance of new bank licences.
The RBI had not lowered interest rates despite nudging to do so by Finance and Commerce Ministries. The central bank did not initiate the process of issuing bank licences despite assurance from Finance Minister P Chidambaram that government would amend the Banking Act in time.
Although PNB provides services to MetLife India as a distribution agent, the share of MetLife India in the business of life insurance is relatively insignificant and is not likely to raise any adverse effect on competition in India says CCI
New Delhi: Fair trade regulator Competition Commission of India (CCI) has approved 30% stake purchase by state-owned Punjab National Bank (PNB) in MetLife India Insurance Company, reports PTI.
CCI said the deal would not have any adverse impact on the competition scenario.
In its order on 26th December, CCI noted that operations of PNB and MetLife India are not similar or identical.
"Although PNB provides services to MetLife India as a distribution agent, the share of MetLife India in the business of life insurance is relatively insignificant and is not likely to raise any adverse effect on competition in India," CCI said.
In 2011, PNB had announced picking up of 30% stake or about 60.38 crore shares in MetLife India for an undisclosed amount.
Besides, the two entities had reached an agreement following which PNB is acting as an agent of MetLife India for the distribution of its insurance products.
MetLife India is a joint venture between MetLife International (an affiliate of US-based MetLife Inc) and group of Indian investors.
Both PNB and MetLife India had approached the fair trade regulator for approval on 7 December 2012.