Page 198 - DMGT303_BANKING_AND_INSURANCE

Unit 9: Priority Sector Lending

Notes
(e) Registered NBFCs (i) RBI Act 1934
(ii) Companies Act 1956
(f) Unregistered NBFCs (i) NBFCs carrying on the business of an FI prior to the coming
into force of RBI Amendment Act 1997 whose application
for CoR has not yet been rejected by the Bank
(ii) Sec. 25 of Companies Act
(g) Other providers like Societies, (i) Societies Registration Act ’60 (ii) Indian Trusts Act (iii)
Trusts, etc. Chapter IIIC of RBI Act ’34 (iv) State Moneylenders Act

Notes The more frequently affirm must refinance debt, the greater is the risk of its not
being able to obtain the necessary financing.

Self Assessment

Fill in the blanks:

11. Concept of ______ is based on thrift, which means cutting their expenditure and sparing
for the purpose, Whereas saving means to save something from the existing income.
12. In order to deal with the problems of coordination for rehabilitation of sick ________,
State Level Inter-Institutional Committees (SLIICs) have been set up in all the States.
13. ______ and _______ have contributed Rs. 40 crore each to this fund. The balance of Rs. 20
crore was contributed by 11 public sector banks.

14. _______ is defined as provision of thrift, credit and other financial services and products of
very small amount to the poor in rural, semi-urban and urban areas for enabling them to
raise their income levels and improve living standards.
15. _______ programme should be fixed taking into account the sustenance requirements,
surplus generating capacity, the break-even point, the life of the asset, etc., and not in an
"ad hoc" manner.

Case Study Increased recovery on written off cases for one of the
top NBFC of India.

The Client

Our client is one of the top non Deposit taking NBFC of India having its presence in
multiple locations in India and actively involved in financing of vehicle loans
Industry

Banking & Finance
Challenges
Our client was burdened with a very high NPA (Non Performing Assets) in the post
recession period, with new business acquisitions having taken a back seat due to
conservative market sentiments it was of core importance for the client to reduce its NPA
portfolio. Contd....

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