Tier-II bonds for retail investors
The Reserve Bank of India has allowed banks to issue Tier-II bonds to retail investors to develop and deepen the corporate bond market. However, banks must ensure investors well understand the nature of the securities and the risks involved, RBI said.
Banks can’t differ on deposit rates: RBI
The Reserve Bank of India has said banks cannot give differential interest rate on deposits below R1 crore. RBI said that deposits of over R1 crore will be termed as bulk deposits and can be taken at differential interest rates by the bank. Banks will have the discretion to disallow premature withdrawal of a term deposit in respect of bulk deposits of R1 crore and above of all depositors.
SBI plans to sell seized tractors via auto mall
SBI has entered into a national level tie-up with Shriram Automall India Limited (SAMIL), a subsidiary of Shriram Transport Finance Company (STFC), for assisting in post-seizure warehousing and sale of seized tractors through organised public sale. The tie-up would help SBI in better price recovery of impaired assets in tractor loans, as SAMIL will offer end-to-end solution, through more than 65 auto malls.
Reliance Life starts endowment plan
Reliance Life Insurance, a part of Reliance Capital, on Thursday announced a new plan that offers guaranteed life cover and maturity benefits. The plan Reliance Life Insurance Super Endowment Plan would provide life insurance coverage for the full policy term by paying for just half of the selected policy period, a company statement said. “This new product is in line with our philosophy to enable customers across all income segments to insure their life and provide security to their dependents,” Reliance Life Insurance chief executive officer Anup Rau said. The new plan is available for customers in the age group 8-60 years with a minimum sum assured of R1 lakh. The policyholder can opt for two policy terms of 14 years or 20 years.