The RBI has reduced the pre-emption requirement imposed on NBFCs by 2.5 percentage points to 10 per cent of their deposit liabilities with immediate effect. The relaxation also extends to maintaining liquid assets now only on a quarterly basis compared to the present norm of ensuring it on a daily basis. The move will result in greater liquidity and higher profitability for NBFCs as the reduction in the statutory requirement will help the NBFCs book higher yielding assets, according to officials in NBFCs.

No yielding to IBRD on rail projects

The Lok Sabha has passed the Railway Budget for 1997-98 with the Railway Minister, Mr. Ram Vilas Paswan, declaring that the Government would not yield to conditionalities proposed by the World Bank for funding rail projects. In a marathon reply to the debate lasting over three hours, Mr. Paswan indicated that the budgetary support of Rs. 1,831 crores to the Railways during 1997-98 would be enhanced by Rs. 170 crores. Reiterating the Centre’s resolve to develop the rail network in backward areas, Mr. Paswan announced that a policy paper had already been prepared by his Ministry on this issue and would be soon forwarded to the Cabinet for approval.

Changes in Broadcast Bill if needed: Minister

The Information and Broadcasting Minister, Mr. S. Jaipal Reddy, said that he was confident of getting the comprehensive Bill on broadcasting passed by the end of this calendar year. Speaking to newspersons immediately after assuming charge of his office, Mr. Reddy said he would try to get the Bill passed in the monsoon session or would definitely see it through by the end of the winter session.