The Government has announced modified guidelines and specific sectors in which FDI in respect of non-banking financial services would be allowed. A notification issued by the Department of Industrial Policy and Promotion of the Union Industry Ministry said that all proposals for foreign equity investment in non-banking financial companies should be considered by the Foreign Investment Promotion Board.

Bank rate may be reference for PLR: SBI chief

The reference rate for the inter-bank money market is likely to be the bank rate fixed by the RBI at 11 per cent, according to Mr. M.S. Verma, Chairman, State Bank of India. Speaking to Business Line, Mr. Verma said: “The only rate which is obvious to me is the bank rate. Another reference rate may appear like the Libor or the Mibor. It may take some time.” For the biggest financial player in the Indian market, “it is quite possible that the bank rate may be the reference rate for the prime lending rate. I think in India it will have a relationship with the bank rate”. The RBI has been pushing for the idea of the bank rate becoming the key rate for all money market players and by tying the deposit rate to the bank rate, it has set up the mechanism to transmit its intentions.

9th Plan export target at $100b

The Commerce Ministry has said the country’s export target of $90-$100 billions could be achieved by the end of the Ninth Plan. According to the annual report of the Ministry of Commerce for 1996-97, released on Thursday, this would mean doubling of the present level of exports within the next five years. “It is our endeavor to achieve an increasing share of imports and exports in GDP and to improve India’s share in world trade by 2001.”