RBI says no change in G-sec trading norms
By Our Banking Bureau | 14 May 2002
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Mumbai: The Reserve Bank of India (RBI) has ruled out any change in norms for trading in government securities in the wake of irregular deals done by some cooperative banks and debt brokers.
RBI governor Dr Bimal Jalan said: The RBIs rules for trading in G-secs are well defined. We do not see any need to change them. The issue thrown up by cooperative banks trading in gilts is one of compliance. A fraud was done by them.
RBI governor Dr Bimal Jalan said: The RBIs rules for trading in G-secs are well defined. We do not see any need to change them. The issue thrown up by cooperative banks trading in gilts is one of compliance. A fraud was done by them. Speaking to newspersons after releasing the India Development Report-2002 (IDR-02) of the Indira Gandhi Institute of Development Research, Jalan said the fraud (in gilts trading by cooperative banks) is being dealt with as per law. State governments are in touch with cooperative banks and they will have to take appropriate action.
About setting up an apex body to oversee cooperative banks, he said: The government is considering that and it is up to it to decide.
