No rate spike during fiscal end as RBI steps keep liquidity easy

Short-term rates bucked the trend of remaining elevated towards the end of fiscal year, as the measures taken by the central bank helped avoid the liquidity crisis typically seen in March. The banking system usually runs short of money close to the end of the fiscal year as companies withdraw funds to pay advance tax and the government reduces spending.This year, the Reserve Bank of India took proactive steps to ensure liquidity, said NS Venkatesh, head of treasury at IDBI Bank. "Call rates went up to 13% for a brief spell on Friday but it...

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IBA panel suggests steps to improve ATM security

A committee set up by the Indian Banks' Association (IBA) has recommended several steps to improve security at ATMs, which, if the central bank accepts them, should make ATM transactions safer but may increase the cost for customers.One of the key suggestions is to set benchmarks for companies that carry cash from banks for replenishing ATMs. The committee has recommended a minimum net worth of Rs 5-10 crore for such cash-management companies. The IBA has yet to finalise the report, but will submit it to the RBI in 7-10 days, Mohan Tanksale,...

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