RBI finalises norms for local area banks

The Reserve Bank of India (RBI) is understood to have finalised the guidelines for setting up new private local area banks with jurisdiction over two or three contiguous districts. The guidelines are to be made public shortly. The minimum paid-up capital is likely to be Rs. 5 crores to allow genuine NGOs, NBFCs and other interested parties to set up shop. At one time, the Finance Ministry thought of opting for a higher paid-up capital of Rs. 10 crores. The minimum paid-up capital for private banks in the urban areas is Rs. 100 crores.

CBI raids HFCL offices, arrests ARM chief

In a series of major developments in the telecom deal case, the elusive former Communication Minister, Mr. Sukh Ram, finally surfaced in London and the CBI arrested the chief of Advance Radio Masts (ARM), Mr. Pattalu Rama Rao, even as it continued its raids and interrogation of the accused. CBI men raided the South Delhi residence of the executive vice president of Himachal Futuristic Communication Ltd (HFCL), Mr. Mahendra Nahata, last evening. They today raided the company’s offices in Nehru Place and Masjid Moth areas here.

HM hopeful of FIs’ support for new projects

Hindustan Motors Ltd is confident of receiving support from FIs and banks for its two new projects - one for the manufacture of contemporary Mitsubishi-Lancer cars at a site near Madras and the other for the manufacture of rural transport vehicles (RTA) at its existing facility at Pithampur in ME Addressing shareholders at the company’s 54th AGM held here on Friday, the HM Chairman, Mr. G. P. Birla, said the financial plans for the two projects had almost been finalised.

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