Brussels - The European Commission on Monday said it would clear Irish plans to guarantee bank deposits after the government agreed to extend such protection to big foreign banks operating in the country.

"The European Commission welcomes the various changes and commitments made and the close cooperation with the Irish authorities over the last week," the EU executive said in a statement.

"The Commission will proceed urgently to the adoption of a decision on the Irish scheme in accordance with EU state aid rules," it said.

Ireland was the first EU country to guarantee deposits in Irish banks amid news of crumbling government finances and the ongoing global credit crisis.

Wellington - New Zealand will guarantee customer deposits in banks and other financial institutions which opt into a scheme designed to shore up confidence in the current international financial crisis, the government announced on Sunday.

Finance Minister Michael Cullen said, "The scheme will cover all retail deposits of participating New Zealand-registered banks and retail deposits by locals in non-bank deposit-taking entities. This would include building societies, credit unions and deposit-taking finance companies."

The Reserve Bank of India has cut the cash reserve ratio by 100 basic points. The decision of the apex bank is aimed to ease the liquidity problem in the financial system. Almost all financial bodies were demanding cut in the CRR from the RBI to improve liquidity condition in the Indian market. The move of the apex bank would release Rs 60,000 crore of bank deposits in the market. The cash reserve ratio is that proportion which banks reserve with the central bank.

The Union government and the Reserve Bank of India (RBI) would provide sufficient liquidity in the monetary system. Both are keeping vigil on the global financial situation and would take appropriate measures to save the interests of investors. They advised people not to worry about their cash in Indian banks as they are strong enough to face any eventuality. The finance minister, P Chidambaram has cancelled his visit to Washington sensing the liquidity fear. He was to attend the meeting of the World Bank and IMF on Monday.

The second biggest bank of India, ICICI said that the bank maintains sufficient liquidity to deal with global meltdown. It is to be noted that the bank has a considerable exposure in the US and Europe markets.

Meanwhile, the shares of ICICI bank witnessed the largest ever fall of 28 percent in the morning session of Bombay stock exchange. The shares of ICICI fell 19.71 per cent on Friday to close at Rs 364.10.

The managing director & CFO of ICICI Bank, Chanda Kochhar said the bank never used rupee funds for its international growth initiatives. The financial health of bank is sound and the customers need not to worry about. The bank has sufficient liquidity with additional liquidity of Rs 12,000 crore in its overseas subsidiaries.

HDFC Mutual Fund house has begins initial offering period of HDFC Fixed Maturity Plan 370 Days October 2008 (1), a close ended income scheme under HDFC Fixed Maturity Plans-Series IX.