Business Roundup 

Better recovery rules for banks

What is India News Service, Tuesday, June 15, 2004, 1700 hrs

The finance ministry is revising laws that deal with corporates owing money to banks and financial institutions. A tax verdict will now allow Indian companies to put together in-house call centres. America's leading venture capital firm is bringing seven companies to India to sell the latest telecom technology.

Experts in the finance ministry are working on two vital acts, the Banking Securitisation Act and the Debt Recovery Tribunal Act, to deal with corporate defaulters. By an estimate, big companies owe Rs 100,000 crore to banks and financial institutions. The amendments are expected to allow banks to recover their dues quickly.

Big Indian corporates like Reliance, Bharti and Wipro are setting up call centres to cater to their customers. They feel this will help them provide superior service and maximise profits. They are acting in the wake of a Department of Taxes verdict that allows use of common infrastructure for domestic as well as international call centres.

The American venture capital firm Norwest Ventures will bring to India seven cutting edge technology companies to sell BPO-related know-how. These companies will offer the latest in telecom technology to big Indian companies such as Reliance, Tata, Satyam, Infosys and Wipro. Sources say that exposure to high end technologies will allow corporate India to speed up and acquire an edge over its global competitors.


Overall:

Recovery laws will be amended: Experts are finding ways to help banks deal with corporate defaulters.

Call centres will cater to India: A tax verdict made it possible for companies to use common infrastructure for domestic and foreign services.

Norwest announced India plans: The American venture capital firm will bring seven high-end telecom technology firms.