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PARA BANKING AND FINANCIAL SERVICES PROVED BY BANKS
What is para banking?
Para banking refers to activities undertaken by banks beyond their core lending and deposit functions, such as insurance, mutual funds, demat services, and merchant banking, to diversify income streams.
What is the maximum number of life insurance companies a bank can tie up with under the open architecture model?
Banks can tie up with multiple life insurers under open architecture.
Which RBI guideline permits banks to undertake para banking activities?
RBI's guidelines on Financial Services offered through Business Correspondents and various Master Directions permit banks to offer para banking services, subject to prescribed norms and board-approved policies.
What is a Depository Participant (DP) in the context of para banking?
A bank acting as intermediary between depositories and investors.
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