Banking and Financial News – 11 May 2014

Parents unsure if kids should bank on their own (Times of India) - The Reserve Bank of India's decision to let banks offer independent savings accounts to children over 10 has received mixed response. Some parents have welcomed it saying this will help teach children financial responsibility. Others are of the view that it exposes them to risk of overspending and fraud.

As per the new RBI guidelines, children can withdraw, transfer and deposit cash on their own, just like adults. However, individual banks will frame their own guidelines on the limit that they plan to set to the amount of transaction.

Those opposing the decision are doing so on the grounds that a 10-year-old isn't mature enough to make or understand financial transactions. Many fear their kids will fall prey to fraudulent commercial practices and want to take part in credit card schemes that banks push.

Syndicate Bank to Raise Rs. 2,100 Crore via Medium-Term Notes (NDTV Profit) - Syndicate Bank plans to raise $350 million (Rs. 2,100 crore at 1 dollar = 60 rupees) through medium-term notes (MTNs) during the current quarter to meet lending requirements of its London branch.

Reliance, Partners Take Government to Arbitration Over Gas Pricing (NDTV Profit) - Reliance Industries Ltd and its partners in a gas block, BP Plc and NIKO Resources, said on Saturday they would take India's government to arbitration over delays in deciding gas prices. The Election Commission in March had asked the government to defer a rise in gas prices until after national elections, results of which will be declared on May 16. Reliance, which operates the world's biggest refining complex in western India, is India's second most valuable company and is controlled by the country's richest man, Mukesh Ambani.

Important Financial Terms in the News explained.

Medium-term note (MTN) is a debt security that usually matures in five to 10 years.

Always remember that you are absolutely unique. Just like everyone else. ~ Margaret Mead

Courtesy : Times of India , NDTV Profit