Enhanced surveillance, stricter accountability, more transparency and a cautious approach to liberalisation on capital account are among the proposals for a new international financial architecture prepared by the IMF, a top official has said. The proposals include promoting orderly integration of financial markets and involving the private sector in the prevention and resolution of financial crises, the IMF Director for Policy Development and Review Department, Mr. Jack Boorman, told newspersons here.

Syndicate Bank equity recast bid hits snags

Syndicate Bank’s efforts to restructure its equity base by converting the accumulated loss of Rs. 990 crores into equity seem to have run into rough weather. According to sources, there are few takers in the Finance Ministry for the proposal. The Mangalore-based bank has received a total contribution of Rs. 1,100 crores from the Union Government through recapitalisation. However, the bank wanted the contribution to be treated as a loan and had suggested that the repayment would be made in instalments of Rs. 100 crores every year.

Curbs eased on use of international credit cards

The RBI has relaxed the conditions on residents holding international credit cards. In a press release, the RBI said: “All residents are now permitted to hold international credit cards which can be used by them not only to meet their travel expenditure in accordance with their entitlement but also other payments like subscribing to a foreign journal, etc., as may be permissible under the exchange control regulations.” Residents are also free to use such cards for payments within India. Reimbursements to card issuing establishments will have to be through authorised dealers.

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