RBI asks banks to provide educational loans at a maximum of 12%
Mumbai: The Reserve Bank of India has asked public sector banks to provide educational loans to students for joining private colleges for full-time graduate or post-graduate courses. This order will apply notwithstanding whether the colleges admit students under the payment or merit catefory.

Loans can now be granted for all courses in medicine, dentistry, engineering, chemical, technology, management, architecture, law, and computer science.

Eligibility criteria for the loans will include the student having secured a valid seat in any one of the above disciplines, in a 'recognised' college, and a family income not exceeding Rs.1 lakh per annum. The loan limits are Rs.15,000 and Rs.50,000 for merit and payment seats respectively.

Repayment will start after two years of completion of the course or six months after the student secures employment, whichever is earlier. The repayment has to be completed in a maximum of five years after the completion of the course.
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UCO Bank asked to take its own decision
Calcutta: The Reserve Bank of India has asked Uco Bank to take its own decision on the issue of forming local head offices. This was part of the bank’s move to decentralise its operations.

These offices will have powers in all banking activities except investments. They will be able to take decisions regarding credit, vigilance, inspection and general administration.

The bank management had earlier asked the Reserve Bank of India to give its view on the subject, to which the latter has now replied.
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Inflation rises to 1.67 per cent
New Delhi: The rate of inflation measured by the wholesale price index, for the week ended 21 August 1999 has touched 1.67 per cent, an increase of 0.11 points, mainly on account of an increase in the price of edible oil and fuel. The wholesale price index during the same period increased to 359.7 points from 358.9 points in the previous week.
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DoT circles permitted to reduce tariffs
New Delhi: According to a report in the Business Standard, the department of telecommunications has permitted its circles to cut rates if and when needed so that they can be competitive in comparison to private sector players.

DoT circles and subscribers in the states of Madhya Pradesh, Maharashtra and Andhra Pradesh, will benefit from this as private basic networks are operational in these places.

DoT has also ordered that these circles cannot undercut the rates offered by private operators, but the rates can match those offered by them. The department says it does not want to initiate any price war.
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Natwest’s plan to buy L&G will affect Barclays
London: National Westminster Bank has bid for the insurance company, Legal & General group, for 10.7 billion pounds. This follows the Lloyds group's 7 billion deal with Scottish Widows, a mutual fund.

Barclays is considered to be next in line, either for a takeover or a merger. Barclays may also try to outbid Natwest’s bid on Legal & General group. Or it has the option of snapping up Norwich Union, another insurance company.
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