Companies & Sectors
Kamath disagrees with SBI Chief, CRR is not an issue

The ICICI Bank chairman said one needs to look at as part of monetary policy that it is exercised and part of it is liquidity policy for the banks

 
Bangalore: ICICI Bank Chairman KV Kamath on Thursday disagreed with the suggestion of State Bank of India (SBI) chief Pratip Chaudhuri that the Reserve Bank of India (RBI) should scrap cash reserve ratio (CRR), saying it is part of the monetary policy and no issue can be made of it, reports PTI.
 
Asked to comment on the vocal slugfest between Chaudhuri and RBI Deputy Governor KC Chakrabarty on the topic, Kamath said in the whole issue of monetary policy, several tools are being used, including statutory liquidity ratio (SLR) and CRR.
 
CRR is the portion of deposits kept by banks with the Reserve Bank on which no interest is paid.
 
"I think the monetary authority (RBI) in its wisdom uses all these tools as appropriate and that's what is being done. This (CRR) is nothing new. India always had a CRR for as long as I can remember and I don't think honestly (there is) an issue to be made here", he told reporters.
 
"You should look at it (CRR) as part of monetary policy that it is exercised and part of it is liquidity policy for the banks", added Kamath, also non-executive Chairman of Infosys Ltd. Earlier, he addressed the eighth India Innovation Summit, organised by CII.
 
Last week, Chaudhuri made a strong pitch for the abolition of CRR, saying that keeping required funds with the Reserve Bank without any interest was costing the banking system about Rs 21,000 crore.
 
He called for phasing out of CRR, saying it would allow banks to lower lending rates. If the RBI can't do away with it, it should at least pay some interest on CRR since banks pay their depositors, he had said.
 
Chaudhuri had also contended that "the CRR policy has possibly denied the country growth, income and employment", and argued that since RBI does not pay any interest on CRR, this acts as a tax on the banking system.
 
Chakrabarty had this week frowned on Chaudhuri's contention on phasing out CRR. "If the SBI chairman is not able to do business as per our regulatory environment, he has to find some other place," he had said.
 

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Lok Sabha approves amendment in AIIMS bill

The All-India Institute of Medical Sciences (Amendment) Bill, 2012, will replace an Ordinance which allowed the six AIIMS-like institutes to become operational in Patna, Bhopal, Raipur, Bhubaneshwar, Jodhpur and Rishikesh from September

 
New Delhi: Amid din over Comptroller and Auditor General (CAG) report on coal block allocation issue, the Lok Sabha on Thursday passed a bill that would allow the government to set up AIIMS-like institutes across the country by a notification, reports PTI.
 
The All-India Institute of Medical Sciences (Amendment) Bill, 2012, will replace an Ordinance which allowed the six AIIMS-like institutes to become operational from 15th September.
 
The bill also confers powers upon the Centre to establish AIIMS-like institutions by notification in the official gazette.
 
Arjun Ram Meghwal (BJP) had given notice for a Statutory Resolution to disapprove the AIIMS (Amendment) Ordinance. However, the resolution could not be taken up as Meghwal was not present.
 
In an effort to correct the imbalance in availability of affordable healthcare, six AIIMS-like medical institutes were announced for Patna, Bhopal, Raipur, Bhubaneshwar, Jodhpur and Rishikesh.
 
"The six states in which the institutes were established had requested the central government to make them operational urgently and to commence the academic session in September 2012," the Statement of Objects and Reasons said.
 
The proposed measure will also help the Centre change the status of the six new AIIMS registered under the Societies Registration Act to be autonomous body corporate on the lines of the existing AIIMS in Delhi.
 
According to the Financial Memorandum, an estimated cost of Rs4,920 crore -- Rs820 crore per AIIMS -- has been approved.
 

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Indian students stranded as UK cancels licence of London Metropolitan University

Current Indian students who are in their second or third years of courses at the London Metropolitan University will need to transfer to another UK university to continue or abandon their courses and return to India within 60 days

London: The licence of a major London-based university to admit Indian and other non-EU students has been revoked by Britain's immigration authorities citing "serious and systemic failings" on the part of the varsity, stranding hundreds of students, reports PTI.

 

With the next academic year starting shortly (September), plans of many Indian students preparing to travel to study at the London Metropolitan University were thrown into jeopardy, while current students will need to quickly make alternative plans.

 

"London Metropolitan University's licence to sponsor non-EU students has been revoked after it failed to address serious and systemic failings that were identified by the UK Border Agency six months ago," a UK Border Agency (UKBA) spokesman said.

 

A task force has been set up to help Indian and other non-EU students affected by the revocation, officials said. The university has over 2,000 international students, including Indians.

 

Current Indian students who are in their second or third years of courses will need to transfer to another UK university to continue their courses.

 

If this is not possible, they will need to abandon their courses and return to India within 60 days, according to the rules.

 

The London Metropolitan University, which recruits heavily from India and has offices in New Delhi and Chennai, is the first British university to have its licence to admit non-EU students revoked under measures to curb student visa abuse.

 

Universities Minister David Willetts said: "It is important that genuine students who are affected through no fault of their own are offered prompt advice and help, including, if necessary, with finding other institutions at which to finish their studies".

 

"We are tonight asking HEFCE (Higher Education Funding Council for England) and Universities UK to lead a task force, which will include UKBA and the NUS, to work with London Metropolitan University to support affected students and enable them to continue their studies in the UK. The task force will start work immediately," he added.

 

"We have been working with them since then, but the latest audit revealed problems with 61 per cent of files randomly sampled," the UKBA spokesman said.

 

"Allowing London Metropolitan University to continue to sponsor and teach international students was not an option. These are problems with one university, not the whole sector. British universities are among the best in the world, and Britain remains a top class destination for top class international students," the spokesman said.

 

"We are doing everything possible, working with Universities UK, to assist genuine students that have been affected," he added.

 

Calls to the University's liason office in New Delhi were greeted with an automated message that the number could not be found.

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