Definition of Bad Banks and NARCL in India
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…
Read article
Functions of the Securities and Exchange Board of India-SEBI
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…
Read article
Role of Pension Fund Regulatory and Development Authority (PFRDA)
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…
Read article
Insurance Business Globally and in India
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…
Read article
Fair Practice codes for Microfinance Institutions
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…
The role of Joint Liability groups (JLG) in delivering microfinance services
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…
Read article