Tuesday, 11th June, 2013

NATIONAL NEWS

• Cabinet sub panel on special status to HK region formed
  • A Cabinet subcommittee headed by H.K. Patil, Minister for Rural Development and Panchayat Raj, has been formed on Monday to examine the orders issued by the government for the implementation of provisions under Article 371(J) of the Constitution to provide special status to Gulbarga, Raichur, Yadgir, Bidar, Bellary and Koppal in the Hyderabad-Karnataka region.

• Rbi norms may hit cooperative banks
  • With the Reserve Bank of India (RBI) setting the June 30 deadline for cooperative banks to comply with a set of regulations, starting with four per cent capital adequacy, banking operations in the cooperative sector are bound to come to a complete halt within the next three weeks.
  • The banks will have to maintain a capital of Rs.4 for every Rs.100 lent. This will have to be progressively increased to seven per cent by 2014 and nine per cent by 2015. Non-compliance of RBI directives in effect would lead to a total freeze on the banking operations, currently performed by the network. Agriculture lending will be the first casualty.
  • The cooperative movement in the State is quite unique when compared with that in the rest of the country. Kerala alone can boast of having a strong network comprising 1,603 primary banks and 14 district banks that come under the apex State Cooperative Bank with deposits to the tune of Rs.82,000 crore.
  • In addition to the deadline for capital adequacy, the RBI had insisted that the cooperative banks should adopt core banking system, be part of the special business process for retail payments set up by the National Payments Corporation of India, and Real Time Gross Settlement system by September 30.

INTERNATIONAL NEWS

• Waiting on climate deal will set path to 5'c warming