BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Asset Finance Company
|
|
|
Investment Company
|
|
|
NBFC Micro Finance Institution
|
|
|
Infrastructure Finance Company
|
Detailed explanation-1: -Microfinance is the provision of financial services to low-income clients, including consumers and the self-employed, who traditionally lack access to banking and related services.en.wikipedia.org/wiki/Microfinance.
Detailed explanation-2: -1.1 These directions shall be called the Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022.
Detailed explanation-3: -What is an NBFC MFI? An NBFC MFI is a non-deposit taking NBFC with a minimum Net Owned Funds (NOF) of Rs. 5 crore (Rs. 2 crore for those registered in the North Eastern Region of the country) and having at least 85% of its net assets as “qualifying assets”.
Detailed explanation-4: -Like a bank, a microfinance institution is a provider of credit. However, the size of the loans are smaller than those granted by traditional banks. These small loans are known as microcredit. The clients of an MFI are often microentrepreneurs in need of economic support to launch their business.