Polaris Software has successfully bagged $55 million deal with The Reserve bank of India to provide Core Banking Solutions to the bank for tenure of next 10 years.
After the development, all the offices of RBI will be covered under Core Banking Solutions that will boost the efficiency of RBI to maintain record of all the operations. Polaris will also cater to the IT requirements of the Central bank for next 10 years major concern being security.
Currency is some ways is the back bone of a country and if it gets adulterated then it cause serious harm to an economy. Increasing number of flake currency has been a constant worry for the government of India.
As an attempt to check the menace of flake currency the government is going to take some concrete steps. Finance Minister, Mr. Pranab Mukherjee has recently announced that certain changes will be brought in the production of bank notes to minimize the chances of the currency being forged.
He announced to start production of 80-85 percent of bank note paper in the country itself in next three years that presently is imported at a huge scale. He also announced the release of the coins with new rupee symbol on them in July this year.
The issuing of the banking licenses to the new private sector is likely to suffer another delay as the Reserve Bank of India and Government will issue the guidelines for the issuing of banking licenses only after the Banking Law Amendments Bill 2011 gets approval from the Parliament.
Along with the guidelines for issuing licences to the private sector banks the Bill once passed will also give additional powers to the Central Bank. Once the Bill is approved then Reserve Bank of India can dismiss a bank’s board in order to protect the interests of the people who are having financial relationship with the bank.
The top Indian corporate houses are in a bid to get the banking licence.
Only yesterday Reserve Bank of India revised the Repo and Reverse Repo rate by 50 basis points and the banks have already started responding to the hike. State owned IDBI Bank has announced hike in its lending and deposit rates.
The bank has hiked both the Base rate and BPLR by 50 basis points taking it to 10 percent and 14.50 percent respectively. It has also increase the deposit rates across various maturities with a maximum of 50 basis points.
The revised rates will be effective from 5th May.
Tomorrow is the day when the Reserve Bank of India will reveal as how much it is going to hike the key lending rates. A lot has been speculated about the hike and the experts believe that the hike can be anywhere between 25 to 50 basis points.
From quite some time now, the Central Bank has been trying to curb the inflation from the market but despite of giving its best efforts, the policies of RBI have proved to be ineffective in taming inflation rate but the inflation has already deterred the economic growth of the country a lot and that is why it is Central Bank’s primary concern.
In a statement RBI said “It is important to lower inflation as quickly and as decisively as possible.”
About the condition of inflation during 2011-12 RBI said “While India's macroeconomic outlook for 2011-12 remains favourable, high oil prices pose the biggest risk to both growth and inflation…Inflation during 2011-12 is likely to moderate slowly but remain above the comfort level as the pass-through of international commodity prices is likely to continue.”
