Banks to market insurance products
New Delhi: The government intends to permit banks to distribute or market insurance products. It is amending the Banking Regulation Act to this effect. Only banks with a three-year track record of positive growth as well as with a strong financial background will be entitled to do insurance business.

In anticipation of the government move, some banks have begun talking of alliances with foreign insurance players. The State Bank of India has already made its intentions clear about entering the insurance business. Bank of Baroda and the private sector Vysya Bank are also planning entry into insurance.
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Inflation dips
New Delhi: The inflation rate recorded a 0.17 percentage point fall in the week ended 30 October, after rising for four weeks. The annual rate of inflation, based on the wholesale price index, declined to 2.78 per cent. The drop is mainly on account of a marginal decline in the indices for food products and non-metallic mineral products.
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Fuel cess earnings to be used to cover deficit
New Delhi: The government plans to make use of the revenue from the cess on fuel to meet its deficit instead of its avowed intention to develop and improve the road infrastructure in the country. The cess is expected to bring Rs 5,800 crore into the government kitty.

The government had announced at the time of introducing the cess that the earnings would be used to create a road fund. However, a proposal of the surface transport ministry to set up a road fund board has been kept in abeyance, and the finance ministry feels it is important to correct the fiscal anomaly immediately making use of the revenue, which is now available in the Consolidated Fund of India.
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RBI eases norms for repatriation of investment
Mumbai: The Reserve Bank of India has issued a notification saying it will not insist that companies investing in joint ventures abroad must fully repatriate the invested amount by way of dividends and royalty within five years. The RBI has said the new guidelines will be applicable for all applications for direct investment abroad. The central bank says the new regulation is expected to facilitate direct investments in joint ventures/wholly-owned subsidiaries abroad by Indian companies.

The RBI has also relaxed the reporting requirements of overseas ventures by Indian companies. Now domestic promoters of such ventures will have to submit half-yearly progress reports instead of quarterly as required now.
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Mecklai, ED&F Man sign pact
Mumbai: Mecklai Financial & Commercial Services has signed a non-exclusive introducing broker agreement with ED&F Man International of London to provide access to Indian corporate clients to international futures exchanges to hedge commodity price risk. The agreement covers  commodities including soyabean oil and meal, palm oil, coffee, sugar and cotton.

ED&F Man is one of the leading commodity brokers in the world.
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