As per Merriam-Webster, Infra- means “below;” so the infrastructure is the “underlying structure” of a country and its economy, the fixed installations it needs to function. These include roads, bridges, dams, water and sewer systems, railways and subways, airports, and harbours. There is no clear definition for infrastructure financing stated anywhere. However, it is common…
Enhanced Access & Service Excellence (EASE) was conceptualized to improve Risk assessment, NPA management, deepening financial inclusion, enhancing Customer service, initiating Digital transformation, Retail and MSME Credit off-take, developing Analytical capabilities, HR transformation and Governance, etc. The Government of India and Public Sector Banks (PSBs) jointly committed to and launched a common PSB Reforms Agenda…
A bad bank is simply an Asset Reconstruction Company (ARC) designed to absorb bad loans or NPA accounts of banks that are written off or deemed by banks as doubtful or lost assets. These are the assets against which banks have already set aside money by way of provisions to cover the losses. Banks sell…
The Securities and Exchange Board of India was constituted as a non-statutory body on April 12, 1988, through a resolution of the Government of India and was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force…
Pension Fund Regulatory and Development Authority (PFRDA) is a regulatory body established in 2003 with its headquarters in New Delhi. PFRDA was initially designed for government employees exclusively, but its services were subsequently expanded to include all Indian nationals and NRIs, including self-employed persons. On 23rd August 2003, the Interim Pension Fund Regulatory & Development…
The Insurance sector comprises two primary segments – Life and General Insurance. Life insurance includes whole life insurance, Term life insurance, Child Plans, Annuities life policies, and Endowment policies, etc. General insurance includes motor insurance, property insurance, and health insurance; crop insurance liability insurance, travel insurance, marine insurance, cargo insurance, etc. For details of these…
The Fair Practices Code document codifies the procedures to ensure clarity, transparency, Timelines, and responsiveness in the financial institution’s relationship with the borrower customers at all stages like marketing, processing, sanctioning, monitoring, and administration. The guidelines on the Fair Practices Code issued to various Regulated Entities (REs) since 2003, inter-alia, advocate fairness and transparency in…
A Joint Liability Group (JLG) is usually an informal group of 4-10 people who seek loans based on a mutual guarantee. The loans are typically used for agriculture or related operations. This group of borrowers includes farmers, rural workers, and tenants. Each member of a JLG is equally liable for the timely repayment of the…
The Reserve Bank of India is the regulator of microfinance institutions in India. The RBI regulations are uniformly applicable to all microfinance lenders including banks, small finance banks, NBFC, and not-for-profit companies (regulated entities –RE). The provisions of Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022 The annual household income level…
The delivery of microfinance institutions (MFIs) around the world follows a variety of different methodologies for the provision of financial services to low–income families. The Task Force constituted by NABARD in 1998 to arrive at a conceptual policy framework encompassing issues in policy, regulation, financing, and capacity building, for sustainable growth of Micro Finance in…