Understanding Debenture Trustee or Bond Trustee Services Offered by Banks

A debenture is a debt instrument issued by a company, acknowledging its obligation to repay the borrowed amount at a specified interest rate. It serves as one of the primary means through which a company raises loan capital. Although the funds raised through debentures become part of the company’s capital structure, they do not constitute…

Regulatory Guidelines Governing Credit Information Companies (CIC)

The Credit Information Companies (Regulation) Act, 2005 is an Act to provide for regulation of credit information companies and to facilitate the efficient distribution of credit and for matters connected therewith or incidental thereto. The Reserve Bank of India and the Government of India have enacted the Credit Information Companies Regulations, 2006 (“Regulations”) and the…

Functions of credit information companies (CIC) and membership to CIC

A Credit Information Company (CIC) is an independent third-party agency registered under CIC laws that collects financial data of individuals about their loans, credit cards, and other related information and shares it with its members, who generally happen to be banks and other financial institutions. The Credit Information Companies (Regulation) Act, 2005 (“CIC Act”), is…

Overview: Distribution of Third-Party Products by Banks

The distribution of third-party products enables banks to diversify their revenue streams through fee-based services. In recent years, banks have evolved into comprehensive financial service providers, offering advisory and distribution services for various third-party products—commonly referred to as para-banking activities. In the banking context, third-party products refer to financial services and investment instruments not directly…

Bank’s Product Policy

The product policy of a bank refers to the comprehensive framework of principles and guidelines that govern the development, management, and delivery of the bank’s financial products and services. It serves as a strategic blueprint to ensure that offerings are aligned with customer needs, regulatory requirements, and the institution’s operational capabilities. This policy framework encompasses…

Product Management in Banks

Product management plays a pivotal role in the banking sector by ensuring that financial products and services are strategically developed, efficiently launched, and effectively managed. This discipline encompasses product discovery, planning, and development, with the aim of aligning offerings with both customer needs and institutional objectives. It involves gaining insights into customer behavior, conducting thorough…

Constraints Faced by Banks in New Product Development

Banks encounter a variety of constraints when developing new products, including technological limitations, fragmented innovation practices, challenges in testing and learning, sluggish performance analysis, regulatory compliance complexities, and resource limitations. For banks operating on legacy core systems, adopting innovative technologies or launching new products can be particularly difficult. These limitations often lead to delays in…

NHAI to Replace FASTag with GPS-Based Toll Collection System from May 2025

The National Highways Authority of India (NHAI) has announced the phased implementation of a GPS-based toll collection system, set to replace the existing FASTag system beginning May 1, 2025. This strategic shift is aimed at enhancing operational efficiency, minimizing congestion at toll plazas, and promoting greater transparency in toll fee computation. Rationale Behind the Transition…

Fee-Based Services or Non-Interest Income of Banks

Banks generate non-interest income primarily through a wide range of fee-based services. These services include monthly account maintenance charges, ATM usage fees, credit card fees, wire transfer charges, and investment advisory services. Below is a detailed overview of the various fee-based income sources for banks: 1. Account-Related Fees Monthly Maintenance and Service Charges:Banks in India…