Banks free to fix service charges
Mumbai: The Reserve Bank of India has allowed banks to fix their own service charges for their customers without adhering to benchmark rates stipulated by the Indian Banks Association. The banks have to only ensure that the charges are reasonable and that they are not below their cost for the service.

This is part of the RBI move to make the banking system further competitive. Rates are expected to get finer and customer service may also become better.
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IDBI to set up panel for consortium lending
Mumbai: The Industrial Development Bank of India will put together a standing committee for large projects where there is consortium lending. The committee will strive to achieve a common approach towards lending, done by banks and financial institutions. It will also suggest information-sharing measures among such consortium lenders.
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DoT’s termination of licences referred to PMO
Mumbai: The department of telecommunications’ decision to terminate the cellular licences of JT Mobile and Fascel has been referred to the prime minister’s office, according to a report in the Business Standard. The PMO is currently in charge of the communications ministry.

DoT claims that these two operators have not replenished their earlier bank guarantees and are hence liable for having their licences terminated. JT Mobile and Fascel, on the other hand, argue that they have paid excess licence fees.

JT Mobile has the cellular licence for Andhra Pradesh and Karnataka while Fascel has the cellular licence for Gujarat.
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Cellular tariff ceilings must go: Seshasayee
Mumbai: K V Seshasayee, chairman, Celullar Operators Association of India, has said that the maximum cellular rates should be market driven and not be fixed by the Telecom Regulatory Authority of India. He also stated that the department of telecommunications should consider cellular operators as partners and not as licensees.
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MTNL, DoT to offer cell services
New Delhi: The Telecom Commission will allow the department of telecommunications and Mahanagar Telephone Nigam Ltd. to offer cellular services temporarily. The permission is temporary since the Telecom Commission is finalising the new terms and conditions in line with the recommendations from the Telecom Regulatory Authority of India.

The DoT and MTNL will currently operate under the same terms and conditions as applicable to private operators.
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IFC to lend $150 million by June 2000
New Delhi: The International Finance Corporation has said that it will lend $150 million to India for financial year ended 1999-2000. It says that corporate restructuring is one of its focus areas in India.

Rashad Rudolf Kaldany, director, South and South-East Asia, IFC, said that owing to sanctions imposed on India in the aftermath of the nuclear explosions, IFC could fund only three projects worth $75 million. He said that IFC will concentrate on funding financial restructuring projects of Indian companies. He also said that IFC will consider funding agri-businesses and export-oriented units.

IFC is also planning to issue rupee bonds in India so as to fix the currency mismatch existing in its portfolio currently. This is in addition to the guarantees provided for local currency financing to Indian companies.
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HDFC loan applications shoot up
Mumbai: The number of loan applications made to the Housing Development Finance Corporation surged 40 per cent during the period April – August 1999. About 75 per cent of HDFC's business comes from individuals. Traditionally, the company has had a huge retail customer base.

This was conveyed by Deepak Parekh, HDFC chairman, while speaking at the inauguration of the Confederation of Real Estate Associations.
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Hudco intends to cut rates
New Delhi: The Housing and Urban Development Corporation is planning to reduce interest rates in order to bring in more customers. The move follows similar rate cuts adopted by other housing finance companies such as the Housing Development Finance Corporation and LIC Housing Finance.

According to V Suresh, chairman and managing director, Hudco’s rates will now be the lowest in the industry. This is because Hudco allows borrowers to repay on a monthly reducing balance basis while other companies allow payment only on a quarterly or annual reducing balance basis.

The new Hudco rates after the rationalisation of its slabs will be:
- Rs.5 lakh to Rs.10 lakh: 13.75 per cent
- Rs.10 lakh to Rs.15 lakh: 14.75 per cent.

Mr.Suresh added that the demand in the upper slabs was significantly higher than in the lower slabs prior to the rationalisation. The slabs earlier were Rs.5 lakh to Rs.8 lakh, and Rs.8 lakh to Rs.15 lakh.
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Passport application available online
New Delhi: Nicnet has developed a website for the Central Passport Organisation, a part of the ministry of external affairs. The website provides a passport application form and also has facilities to check the status of the application, and other related information. The application form is in a downloadable PDF format.

The facility available, at http://passport.nic.in can be used to check the application status. It is  currently available only for New Delhi residents, and will soon be extended to residents of 27 other centres.
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