JAIIB · IEIFS · Chapter 44

Guidelines on Para Banking and Financial Services provided by Banks

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.

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Q

Maximum bank equity in an IDF-NBFC?

A

49 % of equity

Q

Minimum equity to qualify as sponsor?

A

30 % of equity

Q

Bank holding < 30 % equity?

A

CANNOT be a sponsor

Q

What is Primary Dealer (PD)?

A

is an entity registered with RBI as an authorised dealer in Government Securities (G-Secs) — committed to bidding at primary auctions and making secondary-market quotes.

Q

Through a subsidiary — Registration Required With / Regulator?

A

Registration Required With: Register subsidiary as an NBFC with RBI; Regulator: RBI – DNBR

Q

Through a department — Registration Required With / Regulator?

A

Registration Required With: Register with RBI's Internal Debt Management Department (IDMD); Regulator: RBI – IDMD

Q

Minimum net worth of the bank?

A

₹1,000 crore

Q

Maximum net NPA ratio?

A

≤ 3 %

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