Page 103 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services

Notes 2. What is the contribution of the state level industrial development corporation of India, in
the growth of Indian Economy?
3. What are NBFCs? Why are they needed especially in a developing economy?

4. Evaluate the performance of NBFCs in India.
5. What are the main reasons for RBI making the laws stringent for the NBFCs? What will
you suggest to check the issues further?

6. Do you think that SIDBI has done justice with its objective so far? Support your argument
with factual reasoning.
7. "NBFCs are doing functions similar to banks". What is difference between banks & NBFCs?

8. Can all NBFCs accept deposits and what are the requirements for accepting Public Deposits?
9. Are Secured debentures treated as Public Deposit? If not who regulates them?
10. "It is said that rating of NBFCs is necessary before it accepts deposit" Is it true? Who rates
them?
11. Can an NBFC which is yet to be rated accept public deposit? When a company's rating is
downgraded, does it have to bring down its level of public deposits immediately or over
a period of time?
12. In case an NBFC defaults in repayment of your deposit what course of action would you
take?
13. Can an NBFC pre-pay its public deposits? If yes, what are the conditions for that?

Answers: Self Assessment

1. micro, small and medium 2. large scale corporate, co-operative
3. Technical Consultancy Organizations (TCOs)

4. banks 5. Non-bank financial companies (NBFCs)
6. sugar, textile 7. deposit or loan
8. NRIs 9. Companies Act, 1956
10. financial 11. IFCI
12. banks 13. SIDBI

14. stakeholders
15. balance sheet, resources, distribution reach

7.11 Further Readings

Online links www.cidap.gov.in
www.rbi.org.in
www.thehindubusinessline.com

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