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Kelkar may discuss interest rate cut with Jalan, asks banks to shape up for Y2K

Finance Secretary Vijay Kelkar is expected to meet the Reserve Bank of India governor Bimal Jalan on April 8.

The issue of interest rate cut may figure in the meeting.

Today, Kelkar held discussions in Bombay on various issues with bank chiefs from all segments of the banking sector -- to wit, public, private, foreign and co-operative banks.

They were represented by the managing committee of the Indian Banks Association.

Kelkar discussed with the IBA the structural changes taking place in the banking industry.

M N Dandekar, chief executive and secretary of the IBA, said the structural changes are necessitated by changes in the regulatory environment, market forces, technological advances and the effect of integration with global economy.

Kelkar suggested to the IBA that a full-fledged discussion on human resources management be held in the next meeting with the IBA. Re-training the staff and deployment of excess staff are challenges brought in by changes in information technology, he said.

The IBA stressed on capital re-structuring in the discussion.

Kelkar discussed with bankers about Y2K preparedness of banks. The IBA clarified that the banks have taken steps to be Y2K-complaint and as on March 31, 1999 except eight banks, all others were Y2K-complaint. The remaining will be compliant in the current quarter.

The RBI and the IBA are monitoring the progress on a monthly basis, Kelkar was informed.

He emphasised the need to provide special attention to the housing sector and to take steps like training of staff to successfully implement the new Gold Bond Scheme announced in the Union Budget this year.

UNI

Kelkar moots further interest rate cuts

A committed, cautious liberaliser

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