Inform clients about derivatives,RBI tells Banks

The Reserve Bank of India (RBI) has advised Banks to be transparent while marketing derivative products and to educate the customers about the risks involved, according to Mr. K.R.Ananda, Regional Director, RBI, Chennai. He said the RBI will examine the issue of approaching Internet Service Providers (ISPS) to install filters to check spam emails so that gullible investors do not fall for the trap of scamsters tempting them with announcements about winning prizes/lotteries. On the credit flow to the MSME sector, Mr. Ananda said the RBI conducted review meetings every quarter about it and analysed whether the targets were met. RBI has also made it mandatory for Banks to extend loans to MSMEs upto Rs 10 lakh without any collateral.(BL 15092010)