Repo auction: The Reserve Bank of India will conduct a three-day fixed rate repo auction in government of India dated securities on July 20, 1998 for parties holding SGL and current account. The interest rate for the three-day fixed rate repo is pegged at 5 per cent. Payment by application will be on July 20 and repurchase by RBI on July 23, 1998, an RBI press release said. The RBI mopped up Rs 2,000 crore through the three-dayfixed rate repo held on July 18. The interest rate for the three-day fixed rate repo on Saturday was at 5 per cent. The central bank received one application and accepted it.

BoB to launch new deposit scheme: Bank of Baroda (BoB) has decided to launch the BoB money-back deposit scheme on July 20. "The scheme, positioned between a recurring deposit and a flexible deposit combines return with liquidity," said a BoB release issued on Saturday. "It is suited for those drawing a regular monthly income, self-employed professionals, housewives, trusts and business entities with annual financial commitments to keep," it said.

PHDCCI proposes forex reserve fund: The PHD Chamber of Commerce and Industry has proposed creation of a "Forex Reserve Fund" by the Reserve Bank of India and finance ministry to compensate for inadequacies in forward and future covers arising out of volatility in exchange rates. In a communication to the government, it also asked RBI to permit banks to offer forward and futurecover facility for all transactions to instil confidence among investors and boost inflow of foreign investment, a chamber release said.

Nabard aid: The National Bank of Agriculture and Rural Development (Nabard) has distributed Rs 10.75 lakh to 12 central co-operative banks in West Bengal as incentive for deposit mobilisation. The money was distrubuted as part of an incentive scheme which Nabard has formulated to reward those co-operative banks which had registered a 25 per cent growth in their deposit mobilisation in 1996-97.

CBI arrests man for defrauding banks: The Central Bureau of Investigation has arrested one person for having allegedly defrauded several Ahmedabad-based banks in the recent past to the tune of Rs 2.5 crore. Parag J Shah had allegedly cheated the Union Bank of India, Gomtipur branch; the Ahmedabad Mahila Nagrik Shakari Bank, Shastri Nagar, Naranpura; the Indian Overseas Bank, Sarangpur Chakla Branch; and the Indian Overseas Bank in Ahmedabad, according to officialsources. He had allegedly cheated the banks by mortgaging his immovable property in Ahmedabad as security to these banks by producing false valuation and title clearances.