RBI orders special audit

The Reserve Bank of India has ordered a special audit of the Foreign Currency (Non-resident) Accounts Scheme (FCNRA) for the period April 1, 1990 to March 31, 1994. All banks, including foreign, will come within the ambit of the special audit which has to be submitted by September 30, 1994. The RBI has appointed a few independent auditors, as “some grave irregularities in the operation of FCNRA accounts operated by banks have come to light. It is observed that authorised dealers have not claimed the interest portion of the FCNR deposits in strict compliance with the provisions of the scheme.” The audit is to be taken under Section 30 (IB) of the Banking Regulation Act, 1949.

Ranbaxy enters financial services

In its first major foray outside the field of drugs and Pharmaceuticals, the Rs. 600- crore Ranbaxy Laboratories has decided to make an entry into the financial services sector. It has floated Fortis Financial Services, which would have three divisions initially — merchant banking, investments department and corporate finance. The company will soon enter banking, insurance and stock broking, President and CEO of Fortis, Mr. Manab Sen said.

DGCA calls meet to discuss price war

The Director General of Civil Aviation has called a meeting of all the international air carriers on July 8 to discuss the recent price war which has led to a sharp drop in passenger fares. About 30 airlines have been invited to attend the meeting. British Airways offered a substantial cut in June on the Delhi-New York sector. The excursion fare in the economy class was brought down to Rs. 26,000. Other airlines had also brought down their prices. These included Tower Air, Tarom Air and Aeroflot.

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