bank vs nbfi

8/18/2019 Bank vs NBFI

1/65

Financial intermediariesClassifcation: Bank vs NB


2/65


3/65

P S L r u l e a p p l i e s M S F g i v e n

N O P S L

N O


4/65

Commercial

CRR, SLR: yes yes

Cooperati


5/65

Commercial

PSL: yes PSL: Nope

Cooperati


6/65

Commercial

Proft motive No proft no

motive

Cooperati


7/65

Commercial

Voting poeras per

s!are!olding

" person "

Cooperati


8/65


9/65

Commercial #anksP$#lic sector: %% & %' (P) Nayak *%+"-

i#a.org.in/viemem#anks.asp0id1"

Private sector: %2i#a.org.in/viemem#anks.asp0id12

Foreign #anks: "

i#a.org.in/viemem#anks.asp0id1

F3I (in Indian #anks-1 45 a$tomatic & '5 Fapproval

F3I (6oreign #anks-1 "++5 i6 !olly oned s$

http://www.iba.org.in/viewmembanks.asp?id=1http://www.iba.org.in/viewmembanks.asp?id=3http://www.iba.org.in/viewmembanks.asp?id=4http://www.iba.org.in/viewmembanks.asp?id=4http://www.iba.org.in/viewmembanks.asp?id=4http://www.iba.org.in/viewmembanks.asp?id=4http://www.iba.org.in/viewmembanks.asp?id=3http://www.iba.org.in/viewmembanks.asp?id=3http://www.iba.org.in/viewmembanks.asp?id=3http://www.iba.org.in/viewmembanks.asp?id=1http://www.iba.org.in/viewmembanks.asp?id=1http://www.iba.org.in/viewmembanks.asp?id=1


10/65


11/65

Narsim!an:17y#rid (Comm.Bank 8 Coop. soc.-

9!e Sponsor #ank: 7R, 9raining

;ll India 6e district


12/65

st

9!is isan RRB 9!is is its

Sponsor

#ank

Payment @ateay

C


13/65

Pr

".?r#aniation 1 Private#anks, SCB

%.3epositD lo> N;B;R3depend.

2.3e#t Eaiver 1NP;

.Sol$tion : ;malgation %++AG

C


14/65

;lloedHem to raise morecapital

@ave e=i#ility tos!are!olding

Imposed term limits ondirectors

!ttp://mr$nal.org/%+"/"%/#ankingDrr#DamendmentD#illDregionalDr$ral

D#anks.!tml

;m

http://mrunal.org/2014/12/banking-rrb-amendment-bill-regional-rural-banks.htmlhttp://mrunal.org/2014/12/banking-rrb-amendment-bill-regional-rural-banks.htmlhttp://mrunal.org/2014/12/banking-rrb-amendment-bill-regional-rural-banks.htmlhttp://mrunal.org/2014/12/banking-rrb-amendment-bill-regional-rural-banks.htmlhttp://mrunal.org/2014/12/banking-rrb-amendment-bill-regional-rural-banks.htmlhttp://mrunal.org/2014/12/banking-rrb-amendment-bill-regional-rural-banks.htmlhttp://mrunal.org/2014/12/banking-rrb-amendment-bill-regional-rural-banks.htmlhttp://mrunal.org/2014/12/banking-rrb-amendment-bill-regional-rural-banks.htmlhttp://mrunal.org/2014/12/banking-rrb-amendment-bill-regional-rural-banks.html


15/65

P S L , M S F

4 0 % | 3 2 %

D e p e n d i n g o n

B r a n c e s

S ! i6 0


16/65

3esi (8Foreign %+- Foreign #ank

Remaining KK to RI3F 9o S3F

R$ral in6ra.3evelopment 6$nd small enterpridevelopment 6N;B;R3 manages SI3BI manag

N;B;R3 pays interest to

#ank

Same #y SI3

State governmentsget in6ra. Loan

Similar case: sind$strial fn.c

PSL: E!at i6 targets not met0


17/65

State registrar:Cooperative society.

HMM: Banking reg$lation;ct.

NoDproft, noDloss>

one mem#er one vote.

;ll India0 No


18/65

SLR, CRR yes.

PSL: no. (only

Sc!.coom.B-Pro#lems

politiciation,Scandals: ad!$p$ra:etan Parek!,

Visnagar/al$p$r: NP;

Fe

B


19/65

".?r#an (omen-

%.R$ral

".State CooperativeBanks

%.3istrict: Central Cooperative #anks

2.Village: P;CS.Land Development Bank:

ClaB


20/65

; l l I n d i

a f

i n s t i t $


21/65

". =portDImport Bank o6India

%. loan/credit/fnance toe=porters and importers.

2. promotes cross #order

trade and investment. Boss: @overnment o6

India ("++5-

Q


22/65

; l l I n d i

a f

i n s t i t $


23/65

National Bank 6or ;gric$lt$re andR$ral 3evelopment

BOSS: @oI (44.25- 8 RBI (+.'5-

reg$latory a$t!ority: Coop 8 RRBR$ral in6ra. 3evelopment 6$nd(RIF3- i6 PSL not met

7elps State cooperative #anks(SCB-, (RRBs-, FI, cooperative societies etc.

6armers, Cottage/!andicra6t, (S7@-

N


24/65

; l l I n d i

a f

i n s t i t $


25/65

National 7o$sing Bank

Boss: RBI ("++5-

ape= instit$tion 6or !o$singfnance in India

Finance to #anks and NBFCs 6or!o$sing proects

RSI3Q inde= (!o$sing sectorDination-

N


26/65

; l l I n d

i a f

i n s t i t $


27/65

Small ind$stries development#ank o6 India

BOSS: SBI, LIC, I3BI ot!er p$#lic

sector #anks, ins$rance companiesetc.

SI3BITs S3F1 small enterprises

development 6$nd. (Foreign #anksill J%+ #ranc!es, PSL-

S sector, fnance to StateInd$strial 3evelopment

Corporation (SI3C-, State fnance

S


28/65

Fi6t! FI 1 Ind$strial InvestmentBank o6 India (IIBI-

Closed in %+"%


29/65

3FI/3B> @onea6ter Narsim!an II "44


30/65

P S L r u l e a p p l i e s

ock U$estion %++' (?PSC-


31/65

" Skip % ;ttempt

9!e national !o$sing #ank (N7B- aset$p in India as a !olly oned

s$#sidiary o6 !ic! o6 t!e 6olloing

;.State #ank o6 India

B.Reserve Bank o6 India

C.ICICI

3.LIC

ock U$estion %++' (?PSC-

ock U$estion %++D fnd corre


32/65

" Skip % ;ttempt

;.N7B, t!e ape= instit$tion o6 !o$singfnance in India, as set$p as a !o

oned s$#sidiary o6 RBIB.Small ind$stries development #ank o

India as esta#lis!ed as a !olly os$#sidiary o6 t!e Ind$strial developm#ank o6 India

C.Bot! ; and B

3.Neit!er ; nor B




33/65

" Skip % ;ttempt

Find Correct Statement(s-

;.(RIGHT- N7B, t!e ape= instit$tion o6 !o$s

fnance in India, as set$p as a !olly ons$#sidiary o6 RBI

B.(ERON@- Small ind$stries development #aIndia as esta#lis!ed as a !olly oned

s$#sidiary o6 t!e Ind$strial development #India

C.Bot! ; and B

3.Neit!er ; nor B

ock U$estion %++ fnd corre

ock U$estion


34/65

" Skip % ;ttempt

E!ic! o6 t!e 6olloing grant(s- direct credit assito r$ral !o$se!olds0 (%+"2-

".RRB%.N;B;R3

2.Land development Banks

Choice:

;.Only " and %B.Only %

C.Only " and 2

3.", % and 2.

ock U$estion

ock U$estion CS;9 %+"2


35/65

" Skip % ;ttempt

E!ic! o6 t!e 6olloing grant(s- direct credit assito r$ral !o$se!olds0

".RRB%.N;B;R3

2.Land development Banks

Choice:

;.Only " and %B.Only %.

C.Only " and 2

3.", % and 2.

ock U$estion CS;9 %+"2


36/65


37/65


38/65

! " B i l l

Fres #"Sec

Fres securi$ies

Sor$ $er% Long $

Securi$ies resold

ere

" deal in primary market N


39/65

". deal in primary market.directly #$y @Dsec via a$ction.

%. Can Participate in OO

2. $st get license 6rom RBI.

. organ Stanley , @oldmanSac!s, )P organ C!ase,

Standard C!artered Bank, 7SBC(7ongkong and S!ang!aiBanking Corpn. Ltd-

A. ven: SBI, BoB, otak a!indra

etc

P3


40/65

NBFI: 9ype W2 NBFC


41/65

yp

NBFI: 9ype W2 NBFC1 Not Ban


42/65

Bank NonDBanking FinancialCompany

RBI gave t!em license$nder Bankingreg$lation ;ct.

No. 9!ey take license $nderCompany ;ct.

;ll s$pervised #y RBI. NO9 all. e.g. Ins$rance cos1IR3;erc!ant Banking Cos.1SBI.

deposit 6rom p$#lic". time deposit(F3R3-

%. demand deposits(C;S;-

• 9!ey can accept 9ime depos(s$c! NBFC are called 3epotaking NBFC-

• B$t 9!ey cannot accept demdeposits.

• Not part o6 Payment settlem

C9S.

yp

Bank NBFC


43/65

Bank

RBI gave t!emlicense $nderBanking reg$lation;ct.

Registered $ndCompanies ;c

NBFC

Bank NBFC


44/65

Bank

RBI s$pervisest!em all.

3ependsIR3;: Ins$ranc

erc!ant BanSBI

icrofnance:State8RBI

NBFC

Bank

NBFC


45/65

Bank

deposit 6rom p$#lic

time deposit(F3R3-

demand deposits(C;S;-

9!ey can acce 9ime deposit.

NBFC are calle3eposit takingNBFC-

B$t 9!ey cann

accept demandeposits (C;S;

Not part o6 Paysettlement, C9

NBFC

Bank NBFC


46/65

Bank

5 CRR,%%5 SLR

No.Only 3eposit tNBFC. "A5 SL

C

Bank NBFC


47/65

Bank

PSL: +5 & 2%5 PSL doesnHt ap


48/65

Bank NBFC


49/65

Bank lendsdeposited moneyto someone.

B$t cannot investin s!aremarket

9!ey also lend

money to som(1FinanceCompanies-

C;N invest in

s!aremarket. F, PF, Ins$raCos.

Bank NBFC


50/65

Loan rateslinked it!Base Rate

system

3epends•

@old Loans1 r6actor ("A5, %•Not all directly•S!ares: divide

9CS , Coal In%4.•Bonds: /"%/"

Bank NBFC


51/65

S;RF;SI:loan recovery

poers

S;RF;SI On

6or 7o$singfnance comp• @old loan:a$ction

• Bonds: frst• S!ares: last

NBFIYNBFCY So$rce o6 6$nd0


52/65

".From clients: ins$rance, m$t$al 6$n

%.Borro 6rom #anks

2.@et fnance 6rom N;B;R3, Nationa7o$sing #ank, SI3BI etc ape=instit$tions

.Can iss$e o6 #ondsA.Very 6e permitted =ternal Comm

Borroing (CB-

%+"+: Find correct statement


53/65

". Skip %. ;ttempt

". 9!ey cannot engage in t!e acX$isition osec$rities iss$ed #y government.

%. 9!ey cannot accept demand deposits liksavings acco$nt.

Find Correct statement(s-0

;.Only "

B.Only %C.Bot! " and %

3.Neit!er " nor %


54/65

ock U$estion (%+"+-


55/65

". Skip %. ;ttempt

Eit! re6erence to Non #anking fnancial companies(NBFCs- in India, Consider 6olloing statements

". 9!ey cannot engage in t!e acX$isition o6 sec$riti

iss$ed #y government.

%. 9!ey cannot accept demand deposits like savingacco$nt.

Find Correct statement(s-0

;.Only "B.Only %

C.Bot! " and %

3.Neit!er " nor %


56/65

&lassi'ica$ion

NBFI→NBFC→Classification


57/65

9ype W" Reg$lated #y RBI

;sset FinanceCompany(;FC-

• loan to #$y economically prod$ctive assets e

tr$ck, tractor, p$mpset, #$lldoer, eart!move• %+"2: K%++mn CB, a$tomatic indo.• SRI X$ipment Finance (E7I9 L;BL ;9-

In6rastr$ct$reFinance

Company

• @ives loan 6or in6ra. Proects. (I3FC got separa#ank license-

• R$ral lectrifcation Company (RC-• Raiv @and!i @ramin Vid!y$tikaran (Poer i• Rs.2,A++ crore t!ro$g! ta=D6ree #onds.

In6rastr$ct$re3e#t F$nd(I3FDNBFC-

)$st like a#ove, #$t t!ey give very long term loaCan even raise money 6rom a#road.

Core InvestmNBFIYNBFCYRBI controlled


58/65

Investment Cos

Invest in sec$rities

$t!oot fnance

LZ9 fnance.

Same. 9!ey too sec$rities

Investment long(spec$lative, aa=-

;ccept p$#lic 6$

(NBFCD3.-Cannot enter in

.g. 9ata CapitaCapital

Core InvestmCos

NBFIYNBFCYRBI controlled


59/65

LoanCompany

• $t!oot gold loan,annap$ram @old

• L9V.FactorCompany

• Factoring #$siness• 7SBC

isc. C!itF$nd•RBI 8 Registrar o6 C!it 6$n

Resid$ary • DD

NBFIYNBFCYClassifcation


60/65

RBI re!"lated

;FCIn6ra. Finance

I3F

Investment Co.

Core investment

Loan Company

Factor Company

C!it F$nd, isc.

Other than

9 k i LIC B ;lli

NBFIYNBFCYClassifcation (not reg$l


61/65

Ins$rance

companies

9ake premi$m6rom yo$,invest It in

s!ares/#onds.

LIC, Baa ;llian

I

7o$sing

FinanceCompanies

9!ey arrangemoney 6rom

variety o6so$rces, lend itto !omeDloanseekers

37FL, $t!oot7o$sing fnance

etc. N

9!ey !elp

#$ying selling

".India#$lls

% S!erk!an

NBFIYNBFCYClassifcation (not reg$late


62/65

InvestmentBanks(?Sterm-

erger,acX$isition,Eealt!anagement>erc!ant Banker:?nderriting

otak a!indra,Citigro$p,Bank o6;merica

S

erc!ant

BankingCompanies(?

term-

?nderriting,Corporateadvising, 9!eylend money tocompany via#$ying itss!ares

3SP errill Lync!,organ Stanley,Canara Bank, SBIcapital (separatelicense- S

NBFIYNBFCYClassifcation (not reg$late


63/65

Nid!i

One type o6Tcl$#T. Borromoney 6rom

mem#ers, lendit among t!emem#ers.m$t$al #eneft6$nds

SO?97;3R;S

BNFI9 F?N3ltd.

3epartmt o6Compan

a[airs

icrofnance

companie

s

NonDBankingFinancialCompany Dicro FinanceInstit$tion(NBFCDFI-

".SS(;nd!ra-,

%.Cas!por(?P-,

2.?ivan

3epartmt o6Compana[airs

3 6 [ i

NBFIYNBFCYFI


64/65

3epartment o6 company a[airs.

ntry capital A cr.

Individ$al person not given loan a#oveRs.A++++

Foc$s on poor people, omen clients, S7@

Loan it!o$t collateral.

Borroer given e=i#ility to decide I anrepayment

;ct$al interest rate: %M5

SS (;nd!ra-, Cas!por (?P-, ?ivan (arn

3?RIN@ i S (C! A FI-

Pending


65/65

3?RIN@ conomic S$rvey (C!.A FI-

P ) Nayak CommitteeD re6orms in p$#

sector #ank oners!ipBi6$rcation o6 C3 posts in PSB

B;SL norms

Ins$rance amendment

bank vs nbfi

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