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…
Read article
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…
Read article
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…
Read article
What is credit scoring model: Factors considered for the calculation of scores
[This article explains about grading of borrowers who have a short credit history, how the credit score is calculated, factors considered for the calculation of scores, and the important aspects to see in the CIR] Credit scoring models are statistical tools that evaluate creditworthiness and determine the likelihood of default on credit obligations. The credit…
Read article
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…
Read article