India reduces Interest rate on Company Deposits

keralamonitor.com

New Delhi: February 11, 2002 The Government in the Department of Company Affairs (DCA) has issued a notification amending the Companies (Acceptance of Deposits) Rules, 1975 to reduce rate of interest from the existing 14 per cent on public deposits to 12.5 per cent with immediate effect. The notification amending the Companies (Acceptance of Deposits) Rules, 1975, has been issued under Section 58A read with Section 642 of Companies Act, 1956 in consultation with the Reserve Bank of India.

In Rule 3, in sub-rule (1), in Clause ( c ) for the words ‘fourteen per cent", the words "twelve and a half per cent" in the Companies (Acceptance of Deposits) Rules, 1975, have been substituted. Similarly in the Form, in part 1, in item 2, in sub-section (b), entry (A) (B) and (C) for the figures "14" the figures "12.5" have been substituted. In item 4, in sub-item (B), in entry (A), (B), and (C) for the figures "14", the figures "12.5" have been substituted.

The reduction in interest rate is inline with the current trends in reduction of interest rates in the banking and financial sector. It intends to safeguard the interest of depositors and investors so that they are not taken for a ride by companies and returns on their deposits are realistic. The principal rules were first promulgated on February 3, 1975 and since then amended 36 times.(keralamonitor.com)

FIRST GULF BANK WINS DUBAI QUALITY AWARD

Dubai: February 11, 2002 First Gulf Bank (FGB) has won the highly coveted Dubai Quality Award (DQA) in banking and finance. The award was presented to Abdulhamid Saeed, Chief Executive Officer, FGB, during a high profile ceremony at the Dubai World Trade Centre last night.

Held annually under the patronage of H.H. General Sheikh Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Defence Minister, DQA recognises UAE-based companies, which have been judged to excel in their respective fields.

"Quality is a journey not a destination. This is the result of a quality drive which started two years ago, and helped us establish FGB as a major player in the UAE's financial services industry," said Abdulhamid Saeed, Chief Executive Officer, FGB.

"It's not just a badge we wear with honour but also a promise of excellence in service and delivery to each and everyone of our customers."The Dubai Quality Award follows hard on the heels of FGB's recent ISO 9001:2000 certification, the relaunch of its corporate identity and the opening of its state-of-the-art Dubai branch.FGB also became the UAE's first bank this year to announce its 2001 financial results, with a net profit of Dhs 61.7 million, a 23 per cent increase on the previous year.