The central bank has also barred all NBFCs with net owned funds of less than Rs 50 crore from opening deposit accepting branches outside the states in which they have been registered. The NBFCs have been allowed to put up to five per cent of their 15 per cent statutory liquid ratio quotas in unencumbered term deposits of commercial banks. The RBI has asked all NBFCs with assets of Rs 50 crore or more to have compulsory internal auditors with at least three directors. The NBFCs had to put 15 per cent of their deposits in government and approved securities. Similarly, finance companies that provide help to non-governmental organisations will be governed by the department of company affairs and not RBI.
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Grindlays plans door-step banking
Calcutta: ANZ Grindlays Bank is introducing the concept of door-step banking which will later be developed into a 24-hour banking aided by an interactive voice response system -- called phone banking.

With this scheme, the bank intends to improve customer convenience, reduce customer traffic at branches and create opportunities to generate a fee income.  The service will include cash payments, draft issue and cheque/document pick-up. Under phone banking, the system for which is now being developed in Melbourne, Australia, the bank intends to provide all its services such as information on loan and deposits, exchange rates, fee, service charges and interest rate, stop payment directions, account-to-account financial transactions.
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TCS, Bank of Madura in JV
Mumbai:  The private sector Bank of Madura and Tata Consultancy Services are setting up a 50:50 joint venture to provide consultancy in IT-enabled services for the banking and financial services sector. The proposed company will first set up a model back office processing centre at the Bank of Madura. Later this will be converted into a brand and marketed globally.

It will also have a franchise scheme to help entrepreneurs in the information technology area.  The capital structure of the proposed company is still to be worked out, but it is projected to be in the range of Rs 10 to 20 crore. TCS will provide the methodology and technical support for the venture.
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Debt tribunal order against ABCL
Mumbai: The debt recovery tribunal has rejected an application filed by the Amitabh Bachchan Corporation Ltd and three others seeking a review of its order favouring Canara Bank to go ahead to proceed against Amitabh Bachchan and his wife Jaya, who had provided guarantees worth Rs 10 crore against credits to the company.

The tribunal refused to grant a stay on its 11 November 1999 order and directed the guarantors to file a written statement declaring their assets as well as defence by 14 February 2000.
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KPMG to advise on airport long-lease plan
Mumbai: The Airports Authority of India has engaged KPMG Peat Marwick as consultants for its proposed long-leasing of airports in Delhi, Mumbai, Chennai, Calcutta and Bangalore. The board of AAI has approved the selection and it has to be ratified by the civil aviation ministry. The consultants will be given a one-year period to complete the entire process of privatisation of the five airports. The process will be completed in three phases. The exercise will include due diligence, marketing and actual tendering and selection of the bidders.
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