Wednesday, September 23, 2015

Indian Economy – Important Terminology Part 5th

Foreign Banks :- These banks are registered and have their headquarters in a foreign country but operate their branches in our country. Examples of foreign banks in India are : HSDC, Citibank, Standard Chartered Bank, etc.

Regional Rural Banks :- Regional Rural Banks were established under the provisions of an Ordinance promulgated on the 26th September 1975 and the RRB Act , 1976.

Cooperative Banks :- A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks function on the basis of “no-profit no-loss”. Anyonya Co-operative Bank Limited (ACBL) is the first co-operative bank in India located in the city of Vadodara in Gujarat.
NABARD :- NABARD was established by an Act of Parliament on 12th July 1982to implement the National Bank for Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC).

SIDBI :- The Small Industries Development Bank of India (SIDBI) is a state- run bank aimed to aid the growth and development of micro, small and medium scale industries in India.

NBFC :- A non- banking financial company (NBFC) is a company registered under the companies Act, 1956 and is engaged in the business of loans and advances, acquisition of shares/ stock/ bonds/ debentures/ securities issued by government, but does not include any institution whose principal business is that of agricultural activity, industrial activity, sale/ purchase/ construction of immovable property. NSFCs are doing functions akin to that of banks; however there are a few differences:
(i)                 An NBFC cannot accept demand deposits (demand deposits are fund deposits at a depositary institution that are payable on demand – immediately or within a very short period – like your saving or current accounts.)
(ii)               It is not a part of payment and settlement system and as such cannot issue cheaques to its customers
(iii)             Deposit insurance facility of DICGC is not available for NBFC depositors unlike in case of banks.

Micro Credit :- It is a term used to extend small loans to very poor people for self-employment projects that generate income, allowing them to care for themselves and their families.

Micro Finance :- Micro finance offers poor people access to basic financial services such as loans, savings, money transfer services and micro insurance.

Non- Performing Assets :- Non- Performing assets, also called non- performing loans, are loans, made by a bank or finance company, on which repayments are not being made on time.

Retail Banking :- Banking services for individual customers. Retail banking refers to banking in which banking institutions execute transactions directly with customers.

More terminology to be continued soon…………………..

No comments:

Post a Comment