Following a move by the Central Government to further amalgamate regional rural banks (RRBs) in the country, employee unions are demanding the formation of a National Rural Bank of India (NRBI), by amalgamating all RRBs and de-linking of RRBs from the sponsor banks. Ministry view In a letter dated November 28 to the chairmen of sponsor banks of RRBs, the Department of Financial Services, Ministry of Finance, said that currently there are...

-The Business Standard   Finance Minister Pranab Mukherjee explained the government’s helplessness over inflation in the Rajya Sabha with great eloquence on Thursday. Much of what he said may have solid economic fundamentals, but the United Progressive Alliance (UPA) government cannot claim helplessness forever — not when the signs of the cracks it is creating in India’s rural prosperity are becoming so obvious. If any one thing that has protected the Indian...

Pushing the anti-Naxalite development agenda, the Union cabinet this week brought 18 more districts, including three in Jharkhand, into the Integrated Action Plan (IAP) fold with additional funds of Rs 540 crore on cards. The new entrants from Jharkhand will be Khunti, Ranchi (rural) and Giridih. Earlier, 14 districts were included in the IAP. Union rural development minister Jairam Ramesh, during his recent visit to the state, had spoken about the...

-The Indian Express   Maharashtra Chief Minister Prithviraj Chavan on Friday came out in support of NCP leader and Agriculture Minister Sharad Pawar’s suggestion to Prime Minister Manmohan Singh that the UPA’s flagship rural job guarantee scheme (NREGS) should be suspended for “at least three months in a year” so that agricultural labourers are available during the peak season of agricultural operations in various parts of the country. “He (Sharad Pawar) is a...

-The Telegraph   RBI governor D. Subbarao has expressed concern over Bengal’s low credit-deposit ratio, which means that funds from the cash-starved state are actually meeting the borrowing needs elsewhere. The erstwhile Left government used to blame banks for the skewed ratio. But bankers have blamed it on the poor credit absorption capacity of rural Bengal because of fragmented land holdings — a fallout of the land reforms. After a meeting with chief minister...