In a notification addressed to all primary (urban) co-operative banks, RBI said lenders are free to determine their savings bank deposit interest rate subject to two conditions
Mumbai: The Reserve Bank of India (RBI) on Friday deregulated interest rate on savings accounts in urban co-operative banks (UCBs), a move that will fetch better returns for depositors, reports PTI.
RBI had freed savings bank deposit rate for the scheduled commercial banks last month. Subsequently, it had liberalised this for the regional rural banks earlier this week.
In a notification addressed to all primary (urban) co-operative banks, RBI said lenders are free to determine their savings bank deposit interest rate subject to two conditions.
Under the first condition, the notification said, “each bank will have to offer a uniform interest rate on savings bank deposits up to Rs1 lakh, irrespective of the amount in the account within this limit”.
The other condition states that for savings bank deposits over Rs1 lakh, a bank may provide differential rates of interest, if it so chooses.
This would, however, be subject to the condition that banks will not discriminate in the matter of interest paid on such deposits, between one deposit and another of similar amount, accepted on the same date, at any of its offices, it said.
Till now, such banks were mandated to give 4% interest rates on such deposits. The rate was increased from 3.5% in May this year.
Gold Sukh promised returns 27 times than the investment in just 15 months and was able to lure many politicians, police officers and businessmen
Jaipur-based multi-level marketing (MLM) company, Gold Sukh, has allegedly duped over 1.75 lakh investors for over Rs200 crore. The company promised investors 27 time returns in just 15 months, on their deposits for buying gold.
According to the police, the company has spread its operation over 27 cities across India. So far, two directors of the company – Jagdish Sharma and Rameshwar Prasad and seven other management employees of the company have been arrested.
Meanwhile, the number of investors approaching Police to file a complaint is increasing. Several agitated investors also protested outside the closed office of the company. Gold Sukh even managed to lure many politicians, policemen and several businessmen.
According to a news report, the investigating authorities are planning to issue red-corner notice against the directors of the company, who have been absconding and have fled to Bangkok.
“We have started formalities to get the passport of the absconding directors impounded and a red-corner notice issued by the Interpol,” Commissioner of Police BL Soni was quoted saying in daily.
Company’s website has also become non-functional after the news broke out. It is also reported that a committee named Gold Sukh Pidit Sangharsh Samiti, is been formed seeking government’s intervention in the matter.
The news comes at time, when number of other ponzi companies such as SpeakAsia, Tycoon Empire International have managed to dupe investors for several crore. Investigation authorities are planning several measures to curb such companies claiming to give easy and quick income.
Calling off the deal also means that Reliance will have to wait for some more time to enter into insurance business
Reliance Industries Ltd (RIL), India's biggest company, said its discussion to buy majority stake in two Bharti Axa insurance ventures is terminated mutually due to difference over long term vision and joint management in the future.
In a release, RIL, said, "(Our) Negotiations on the contemplated acquisition by RIL and Reliance Industrial Infrastructure Ltd (RIIL) of Bharti's shareholding of 74% in Bharti AXA Life Insurance Co Ltd and Bharti AXA General Insurance Co. Ltd are being jointly terminated".
The Competition Commission of India (CCI) also cleared this deal in July. Earlier in June, both RIL and AXA said that they have reached an understanding on this deal. If completed, then RIL and RIIL would have hold 57% and 17% stake in both the insurance companies and would have become, AXA's joint venture partners in India. AXA, on the other hand would have retained its 26% stake and continued to manage day-to-day operations of the insurance companies.
Bharti had entered into joint ventures with the AXA group in 2006 and held 74% stake in both these ventures-Bharti AXA Life Insurance and Bharti AXA General Insurance.
During fiscal year 2011, Bharti AXA Life collected premiums of Rs7.9 billion and Bharti AXA GI collected gross direct premiums of Rs5.5 billion.