Brownfield Investment in the Banking Sector: Meaning, Benefits, and Challenges
When global financial institutions expand into new markets, they often face a choice between Greenfield investment (building a new entity from scratch) and brownfield investment (acquiring or merging with an existing bank). In the banking sector, a brownfield investment refers to a foreign company entering a market by ‘purchasing an existing bank, acquiring a significant…
Read article Brownfield vs. Greenfield vs. Whitefield Investment in Banking
In the banking and financial sector, foreign investments can take different forms depending on the entry strategy of the investor. The three most discussed approaches are Brownfield, Greenfield, and Whitefield investments. 1. Greenfield Investment A greenfield investment occurs when a foreign bank sets up operations from scratch in a new market. This involves building branches,…
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Punishments Under India’s Consumer Protection Act, 2019: What Banks and Businesses Should Know
India’s Consumer Protection Act, 2019 is designed to safeguard consumer rights and impose strict penalties on businesses that fail to comply. Whether it’s a misleading advertisement, selling adulterated products, or ignoring consumer forum orders, the law prescribes serious consequences — including imprisonment and hefty fines. Below is a simplified breakdown of the key provisions relevant…
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What is Payment and Settlement System?
The payment and settlement system in India is governed by the Payment and Settlement Systems (PSS) Act, 2007. According to definition of PSS Act 2007, Payment System means a system that enables payment to be effected between a payer and a beneficiary, involving clearing, payment or settlement service or all of them. This includes the…
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Bank Finance to NBFCs: Registered vs. Not Requiring RBI Registration
Banks in India play a crucial role in providing finance to Non-Banking Financial Companies (NBFCs). The approach, however, differs depending on whether the NBFC is registered with RBI or belongs to a category that **does not require RBI registration**. Bank Finance to RBI-Registered NBFCs Banks can extend need-based working capital and term loans to NBFCs…
Fair Practices Code (FPC) for NBFCs in India
The Fair Practices Code (FPC) is a mandatory framework issued by the Reserve Bank of India (RBI) for applicable Non-Banking Financial Companies (NBFCs). It sets ethical standards and ensures responsible lending, transparency, and customer protection throughout the borrower–lender relationship. Purpose and Objectives of the FPC The key goals of the Fair Practices Code are to:…
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