Digital lenders in India are increasingly using aggressive recovery practices such as late-night calls, abusive messages, and threats as loan defaults rise due to the economic downturn from the pandemic. Borrowers complain of harassment tactics including threats to damage their credit scores. A new industry code of conduct aims to prevent unscrupulous practices and protect customers, but some lenders are still using questionable recovery methods. The Reserve Bank of India had previously laid out rules after a prior crisis but lenders are still pushing boundaries, risking a regulatory crackdown.
This document provides an overview and analysis of paradigm changes and challenges facing the Indian banking industry in the new millennium. It discusses key changes in areas such as human resources, marketing, and new challenges. Regarding human resources, it notes the "HR crunch" public sector banks face from competition and the need to retain talented employees. For marketing, it examines how the 4Ps of marketing have become crucial and how customers are more demanding. Indian banks will need to adapt to remain competitive in this transforming industry.
CBLO is a money market instrument that allows entities access to borrow and lend funds against securities for short periods of 1 day to 1 year. It involves CCIL acting as an intermediary between the borrower and lender. Capital employed represents the total long-term funds from shareholders and creditors used in a business. It is used to calculate return on capital employed (ROCE). A qualified institutional buyer (QIB) is an institution that can privately purchase securities from listed companies to help companies raise funds within India's domestic market. The statutory liquidity ratio (SLR) is the minimum fraction of deposits that banks must maintain as liquid assets like government securities and cash.
CIBIL is India's first Credit Information Bureau established in 2000 as a repository of credit information on commercial and consumer borrowers. It collects data from its member institutions including banks, NBFCs, and other lenders to create credit reports on borrowers. These reports provide members with insights into applicants' credit histories and repayment records to facilitate more informed lending decisions. CIBIL's products and services help both lenders to better assess risk and price loans, and borrowers to demonstrate responsible credit behavior and more easily access financing.
Factors for survival of pawn broking in indiapraveen singh
This document discusses factors that have helped pawn broking survive in today's business environment where banks and other financial institutions offer loans using gold as collateral. It aims to study the approaches taken by pawn brokers to facilitate small credit needs. A literature review covers factors influencing customer selection of banks and financial institutions. Studies found service quality, interest rates, and social factors play a role. The document also discusses the traditional role of pawn brokers in India in providing credit and high interest rates charged. It aims to understand factors for the success of organized and unorganized lending in India through a study of 80 pawn brokers in Bangalore.
Management Information System on bkashRageeb Hasan
This document provides an executive summary and table of contents for a report on the management information system of bKash Limited. It discusses that bKash is a mobile money system and subsidiary of BRAC Bank that aims to provide financial services to underserved populations in Bangladesh. The report contains 4 chapters, including an introduction to bKash, an overview of the company, a description of the management information system used by bKash including hardware and software, and a conclusion. It provides details on bKash services, popular software used like business management and money transaction software, and findings and recommendations.
bKash is a mobile banking joint venture between BRAC Bank and International Finance Corporation that aims to promote financial inclusion in Bangladesh. It faces some challenges including network issues that cause system outages, high service fees compared to traditional banks, and security concerns like the inability to recover money sent to the wrong phone number. To address these problems, bKash needs to improve its server infrastructure, lower fees and commissions to attract more customers, provide more cash to agents, increase privacy for transactions, and better promote services like international remittances.
bkash is a mobile banking service established in 2011 as a joint venture with BRAC Bank in Bangladesh. The document identifies several problems with bkash's services and provides recommendations for improvements. It suggests that bkash improve its server stability, decrease fees and commissions to attract more customers, make the help line free and available 24/7, introduce a money recovery system, and improve agent privacy, funding, and training to better serve customers. It also recommends bkash prioritize promoting its international money transfer services.
This document provides information on how to verify various documents online, including PAN card numbers, income tax returns, Aadhaar cards, bank accounts linked to Aadhaar, voter ID cards, driving licenses, vehicle registrations, GST registration, land records, company charges, and RBI defaulter lists. It also discusses checking credit history and CIBIL scores online through the CIBIL website. The key points covered are online verification of PAN numbers, Aadhaar status, vehicle details, and obtaining CIBIL scores and credit reports.
This document provides an overview and analysis of paradigm changes and challenges facing the Indian banking industry in the new millennium. It discusses key changes in areas such as human resources, marketing, and new challenges. Regarding human resources, it notes the "HR crunch" public sector banks face from competition and the need to retain talented employees. For marketing, it examines how the 4Ps of marketing have become crucial and how customers are more demanding. Indian banks will need to adapt to remain competitive in this transforming industry.
CBLO is a money market instrument that allows entities access to borrow and lend funds against securities for short periods of 1 day to 1 year. It involves CCIL acting as an intermediary between the borrower and lender. Capital employed represents the total long-term funds from shareholders and creditors used in a business. It is used to calculate return on capital employed (ROCE). A qualified institutional buyer (QIB) is an institution that can privately purchase securities from listed companies to help companies raise funds within India's domestic market. The statutory liquidity ratio (SLR) is the minimum fraction of deposits that banks must maintain as liquid assets like government securities and cash.
CIBIL is India's first Credit Information Bureau established in 2000 as a repository of credit information on commercial and consumer borrowers. It collects data from its member institutions including banks, NBFCs, and other lenders to create credit reports on borrowers. These reports provide members with insights into applicants' credit histories and repayment records to facilitate more informed lending decisions. CIBIL's products and services help both lenders to better assess risk and price loans, and borrowers to demonstrate responsible credit behavior and more easily access financing.
Factors for survival of pawn broking in indiapraveen singh
This document discusses factors that have helped pawn broking survive in today's business environment where banks and other financial institutions offer loans using gold as collateral. It aims to study the approaches taken by pawn brokers to facilitate small credit needs. A literature review covers factors influencing customer selection of banks and financial institutions. Studies found service quality, interest rates, and social factors play a role. The document also discusses the traditional role of pawn brokers in India in providing credit and high interest rates charged. It aims to understand factors for the success of organized and unorganized lending in India through a study of 80 pawn brokers in Bangalore.
Management Information System on bkashRageeb Hasan
This document provides an executive summary and table of contents for a report on the management information system of bKash Limited. It discusses that bKash is a mobile money system and subsidiary of BRAC Bank that aims to provide financial services to underserved populations in Bangladesh. The report contains 4 chapters, including an introduction to bKash, an overview of the company, a description of the management information system used by bKash including hardware and software, and a conclusion. It provides details on bKash services, popular software used like business management and money transaction software, and findings and recommendations.
bKash is a mobile banking joint venture between BRAC Bank and International Finance Corporation that aims to promote financial inclusion in Bangladesh. It faces some challenges including network issues that cause system outages, high service fees compared to traditional banks, and security concerns like the inability to recover money sent to the wrong phone number. To address these problems, bKash needs to improve its server infrastructure, lower fees and commissions to attract more customers, provide more cash to agents, increase privacy for transactions, and better promote services like international remittances.
bkash is a mobile banking service established in 2011 as a joint venture with BRAC Bank in Bangladesh. The document identifies several problems with bkash's services and provides recommendations for improvements. It suggests that bkash improve its server stability, decrease fees and commissions to attract more customers, make the help line free and available 24/7, introduce a money recovery system, and improve agent privacy, funding, and training to better serve customers. It also recommends bkash prioritize promoting its international money transfer services.
This document provides information on how to verify various documents online, including PAN card numbers, income tax returns, Aadhaar cards, bank accounts linked to Aadhaar, voter ID cards, driving licenses, vehicle registrations, GST registration, land records, company charges, and RBI defaulter lists. It also discusses checking credit history and CIBIL scores online through the CIBIL website. The key points covered are online verification of PAN numbers, Aadhaar status, vehicle details, and obtaining CIBIL scores and credit reports.
The Reserve Bank of India released a draft report from a working group examining issues related to discrimination in pricing of credit, which made several recommendations to promote transparency and fairness in credit pricing, including moving towards computing base rates based on marginal cost of funds, ensuring boards approve pricing policies to prevent discrimination, and developing new benchmarks for floating rate loan products. The report also recommended improving grievance redressal systems, financial education initiatives, and enhancing borrower mobility between loans.
Sarah Rotman of CGAP was kind enough to present on the basics of branchless banking to NetHope's Payment Innovations Working Group in March 2012, which is open to all NetHope members. Please contact hamilton.mcnutt@nethope.org for more information.
The document discusses bancassurance in India, including:
1) Examples of insurance company tie-ups with banks like LIC, SBI Life Insurance, and Birla Sun Life Insurance.
2) A SWOT analysis of bancassurance that identifies strengths like large bank and insurance networks, and weaknesses like lack of IT infrastructure and need for employee training.
3) Guidelines from the Reserve Bank of India and Insurance Regulatory and Development Authority for banks participating in insurance, including restrictions on risk participation and investment limits.
This document is the report of the Working Group on Pricing of Credit constituted by the Reserve Bank of India. It discusses international practices on pricing of floating rate loans and determination of credit spreads. It notes that in India, interest rates have moved from an administered regime to a deregulated one. However, concerns remain regarding downward stickiness of rates, discriminatory treatment of old vs new borrowers, and arbitrary changes in spreads. The Working Group was tasked to review these issues and suggest measures to improve transparency in pricing of floating rate loans.
Bandhan Bank provides microfinance services focused on empowering disadvantaged women. It was founded in 2001 and is headquartered in Kolkata, India. Bandhan Bank offers savings accounts, term deposits, current accounts, and microloans for small businesses, agriculture, retail, and more. It operates primarily through the self-help group and joint liability group models. Bandhan Bank became a universal bank in 2014 and has over 2,000 branches across India serving over 6.6 million borrowers. The bank aims to alleviate poverty through expanding access to financial services.
Mas finanial ltd 2015 16 BK SCHOOL OF MANAGEMENT Bhavesh Patel
This document provides an overview of non-banking financial companies (NBFCs) in India. It defines NBFCs as financial institutions that provide banking services without a banking license. NBFCs are regulated by the Reserve Bank of India and must be registered with the RBI. To register, an NBFC needs a minimum net owned fund of Rs. 25 lakh. The document outlines the registration process and regulatory framework for NBFCs in India.
AuthBridge Newsletter Issue 5- Background Screening is Important Across the H...AuthBridge
Background check is as useful in screening a top ranking executive as it is for verifying the past credentials of a suitable matrimonial match. Background screening becomes an effective process when efficiency and thoroughness is applied to the verification aspects like identity, accessibility, criminality and fitment.
For more information visit www.authbridge.com
Obtaining New Banking Licenses in India: Challenges and OpportunitiesCognizant
Banks applying for new banking licenses in India will be challenged by the Reserve Bank of India's (RBI) stringent new guidelines, which emphasize financial inclusion, rural banking, technology innovation and financial credibility. At the same time, these issues can open opportunities for consulting firms and service providers.
The Yes Bank crisis exposed weaknesses in banking supervision and the need for a dedicated resolution framework. Trouble had been building for years as Yes Bank's CEO and CFO oversaw underreporting of bad loans. Its loans were exposed to troubled firms and exceeded deposits. Non-performing assets ballooned while ratings downgraded and deposits fled. The RBI needs improved supervision and accountability for lapses. A specialized resolution mechanism is also needed to diagnose and resolve troubled banks swiftly to avoid systemic risks. While the RBI supervises banks, they must also strengthen governance to establish accountability.
The PPT contains information about CIBIL - leading rating agency in India. It tells you about the shareholding pattern, CSR, management and other relevant info
Case View with Rajat Gandhi - P2P Lending in India: Delivering Disruptive Inn...ET Cases
Case View with Rajat Gandhi, Founder & CEO - FAIRCENT
Faircent is the India’s largest P2P lending marketplace for borrowers and lenders to connect directly through its unique platform, which allows Auction and Reverse Auction Indexation. Faircent’s dynamic algorithms ensure that the right fit is done
Credit score or CIBIL score is a financial repayment history behavior of Individual or Business.
Why is your credit score important:
All banks and financial institutions are giving loan on the basis of credit score. Grounded along the score value they finalize credit worthiness of individual or business.
to know more visit : www.waytobank.com
Banking licenses for nbfc’s in banking its impactAnil Nain
This document discusses non-banking financial companies (NBFCs) and the impact of allowing them to obtain banking licenses in India. NBFCs are currently regulated by the Reserve Bank of India and provide financial services like loans and insurance, but cannot accept demand deposits or issue checks like commercial banks. The document notes that the RBI is considering providing limited banking licenses to qualified NBFCs and private companies. This would foster greater competition and reduce costs, while improving access to financial services and strengthening the overall banking sector. However, it may also make monetary policy more difficult to implement and decrease the RBI's regulatory power.
This document provides information about microcredit and self-help groups (SHGs) in India. It discusses how SHGs operate by collecting monthly savings from members and using those funds to provide internal loans. It also describes the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which aims to strengthen credit delivery to small businesses by providing guarantee coverage on loans without requiring collateral. CGTMSE covers eligible loans up to Rs. 100 lakh per borrower and aims to reassure lenders that the guarantee fund will cover a portion of losses in the event of default.
Indian Microfinance - Looking Beyond The AP Act and its Devastating Impact on...hamishbanks
The paper documents the disastrous consequences of legislation passed by Government of Andhra Pradesh in December 2010, and how this has brought about a national crisis. The legislation - the AP Act - not only undermines India’s financial inclusion agenda but also punishes the poor in every state across India. We welcome and encourage the swift passage of the upcoming microfinance Bill through Parliament, which should ultimately supersede the AP Act. While the Bill must be passed at the earliest to avoid further damaging the lives of India’s poor, the report highlights provisions in the Bill and recent RBI circular on NBFC-MFIs that threaten to undermine the Bill’s intentions. Finally, it examines the important role of the private sector in contributing to the challenge of facilitating financial inclusion to India’s 450 million unbanked citizens.
Premier University
B.B.A
Assignment on: Mobile banking of bkash in Bangladesh
Submitted to
Prepared By
Md.Ariful Islam Saimon Chy
ID:1022114412 Phone :01673765551
E-mail : saimonchy28@yahoo.com
Everything You Wanted To Know About CIBIL - www.propertiesandloans.comBhavya Sahni
CIBIL is an organization that tracks individuals' credit histories in India and assigns each a CIBIL score. This score is used by banks and financial institutions to assess loan applications. An individual can check their CIBIL score online for a nominal fee. The score ranges from 900 (supreme) to below 500 (no hope) and impacts what types of loans and interest rates one qualifies for. Maintaining a good credit score involves paying all bills on time, not overusing credit cards, and maintaining a diverse credit profile with a mix of loans and low credit utilization.
1. CIBIL is India's first credit information bureau established by SBI and HDFC with 40% stake each to maintain credit histories and provide credit reports to members.
2. It collects and disseminates credit information on both individual and corporate borrowers from its members in the form of Commercial and Consumer Credit Information Reports.
3. RBI guidelines recommend diversified ownership of credit bureaus with no single entity owning more than 10% initially and 5% over time, which CIBIL has implemented.
Strategies for Marketing High Ticket Housing LoanSovan Kundu
This document discusses strategies for State Bank of India (SBI) to market high-ticket housing loans in Kolkata, India, with an emphasis on partnerships with builders. It provides background on SBI and describes the methodology used. It then analyzes SBI's current position in the housing loan market, identifies problems with its current builder partnerships, and provides results from a survey of housing loan customers. Finally, it performs a SWOT analysis and provides recommendations, including decreasing turnaround times, placing loan officers at builder project sites, and improving customer service.
Credit bureaus collect credit and loan repayment history data from creditors to generate credit scores that assess an individual's creditworthiness. Lenders rely heavily on these scores to make informed credit granting decisions and mitigate risk. A low credit score below 300 would result in an automatic rejection for a vehicle or home loan application. While credit bureaus help lenders and encourage timely repayments, they also carry risks like inaccurate information that can unfairly impact credit scores, as well as potential privacy and identity theft issues if data is not properly secured. Major credit bureaus in India that generate credit scores include CIBIL, CRISIL, Equifax, ICRA, and Experian.
This document summarizes a research study that assessed the credit granting system of salary loan programs offered by two specialized government banks in the Philippines - Land Bank of the Philippines and Development Bank of the Philippines. The study aimed to evaluate the effectiveness of the credit granting system with the intervention of partner institutions, and determine its relationship to the financial performance of the salary loan programs. Data was collected through surveys of bank employees, partner institution representatives, and salary loan clients. The results found that while diligently executed, problems could arise from weak assessment of qualified borrowers by partner institutions. However, the banks' financial statements still showed the benefits outweighed the risks. The study concluded that eligibility criteria, partner institution competency, and credit controls should be
The Reserve Bank of India released a draft report from a working group examining issues related to discrimination in pricing of credit, which made several recommendations to promote transparency and fairness in credit pricing, including moving towards computing base rates based on marginal cost of funds, ensuring boards approve pricing policies to prevent discrimination, and developing new benchmarks for floating rate loan products. The report also recommended improving grievance redressal systems, financial education initiatives, and enhancing borrower mobility between loans.
Sarah Rotman of CGAP was kind enough to present on the basics of branchless banking to NetHope's Payment Innovations Working Group in March 2012, which is open to all NetHope members. Please contact hamilton.mcnutt@nethope.org for more information.
The document discusses bancassurance in India, including:
1) Examples of insurance company tie-ups with banks like LIC, SBI Life Insurance, and Birla Sun Life Insurance.
2) A SWOT analysis of bancassurance that identifies strengths like large bank and insurance networks, and weaknesses like lack of IT infrastructure and need for employee training.
3) Guidelines from the Reserve Bank of India and Insurance Regulatory and Development Authority for banks participating in insurance, including restrictions on risk participation and investment limits.
This document is the report of the Working Group on Pricing of Credit constituted by the Reserve Bank of India. It discusses international practices on pricing of floating rate loans and determination of credit spreads. It notes that in India, interest rates have moved from an administered regime to a deregulated one. However, concerns remain regarding downward stickiness of rates, discriminatory treatment of old vs new borrowers, and arbitrary changes in spreads. The Working Group was tasked to review these issues and suggest measures to improve transparency in pricing of floating rate loans.
Bandhan Bank provides microfinance services focused on empowering disadvantaged women. It was founded in 2001 and is headquartered in Kolkata, India. Bandhan Bank offers savings accounts, term deposits, current accounts, and microloans for small businesses, agriculture, retail, and more. It operates primarily through the self-help group and joint liability group models. Bandhan Bank became a universal bank in 2014 and has over 2,000 branches across India serving over 6.6 million borrowers. The bank aims to alleviate poverty through expanding access to financial services.
Mas finanial ltd 2015 16 BK SCHOOL OF MANAGEMENT Bhavesh Patel
This document provides an overview of non-banking financial companies (NBFCs) in India. It defines NBFCs as financial institutions that provide banking services without a banking license. NBFCs are regulated by the Reserve Bank of India and must be registered with the RBI. To register, an NBFC needs a minimum net owned fund of Rs. 25 lakh. The document outlines the registration process and regulatory framework for NBFCs in India.
AuthBridge Newsletter Issue 5- Background Screening is Important Across the H...AuthBridge
Background check is as useful in screening a top ranking executive as it is for verifying the past credentials of a suitable matrimonial match. Background screening becomes an effective process when efficiency and thoroughness is applied to the verification aspects like identity, accessibility, criminality and fitment.
For more information visit www.authbridge.com
Obtaining New Banking Licenses in India: Challenges and OpportunitiesCognizant
Banks applying for new banking licenses in India will be challenged by the Reserve Bank of India's (RBI) stringent new guidelines, which emphasize financial inclusion, rural banking, technology innovation and financial credibility. At the same time, these issues can open opportunities for consulting firms and service providers.
The Yes Bank crisis exposed weaknesses in banking supervision and the need for a dedicated resolution framework. Trouble had been building for years as Yes Bank's CEO and CFO oversaw underreporting of bad loans. Its loans were exposed to troubled firms and exceeded deposits. Non-performing assets ballooned while ratings downgraded and deposits fled. The RBI needs improved supervision and accountability for lapses. A specialized resolution mechanism is also needed to diagnose and resolve troubled banks swiftly to avoid systemic risks. While the RBI supervises banks, they must also strengthen governance to establish accountability.
The PPT contains information about CIBIL - leading rating agency in India. It tells you about the shareholding pattern, CSR, management and other relevant info
Case View with Rajat Gandhi - P2P Lending in India: Delivering Disruptive Inn...ET Cases
Case View with Rajat Gandhi, Founder & CEO - FAIRCENT
Faircent is the India’s largest P2P lending marketplace for borrowers and lenders to connect directly through its unique platform, which allows Auction and Reverse Auction Indexation. Faircent’s dynamic algorithms ensure that the right fit is done
Credit score or CIBIL score is a financial repayment history behavior of Individual or Business.
Why is your credit score important:
All banks and financial institutions are giving loan on the basis of credit score. Grounded along the score value they finalize credit worthiness of individual or business.
to know more visit : www.waytobank.com
Banking licenses for nbfc’s in banking its impactAnil Nain
This document discusses non-banking financial companies (NBFCs) and the impact of allowing them to obtain banking licenses in India. NBFCs are currently regulated by the Reserve Bank of India and provide financial services like loans and insurance, but cannot accept demand deposits or issue checks like commercial banks. The document notes that the RBI is considering providing limited banking licenses to qualified NBFCs and private companies. This would foster greater competition and reduce costs, while improving access to financial services and strengthening the overall banking sector. However, it may also make monetary policy more difficult to implement and decrease the RBI's regulatory power.
This document provides information about microcredit and self-help groups (SHGs) in India. It discusses how SHGs operate by collecting monthly savings from members and using those funds to provide internal loans. It also describes the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which aims to strengthen credit delivery to small businesses by providing guarantee coverage on loans without requiring collateral. CGTMSE covers eligible loans up to Rs. 100 lakh per borrower and aims to reassure lenders that the guarantee fund will cover a portion of losses in the event of default.
Indian Microfinance - Looking Beyond The AP Act and its Devastating Impact on...hamishbanks
The paper documents the disastrous consequences of legislation passed by Government of Andhra Pradesh in December 2010, and how this has brought about a national crisis. The legislation - the AP Act - not only undermines India’s financial inclusion agenda but also punishes the poor in every state across India. We welcome and encourage the swift passage of the upcoming microfinance Bill through Parliament, which should ultimately supersede the AP Act. While the Bill must be passed at the earliest to avoid further damaging the lives of India’s poor, the report highlights provisions in the Bill and recent RBI circular on NBFC-MFIs that threaten to undermine the Bill’s intentions. Finally, it examines the important role of the private sector in contributing to the challenge of facilitating financial inclusion to India’s 450 million unbanked citizens.
Premier University
B.B.A
Assignment on: Mobile banking of bkash in Bangladesh
Submitted to
Prepared By
Md.Ariful Islam Saimon Chy
ID:1022114412 Phone :01673765551
E-mail : saimonchy28@yahoo.com
Everything You Wanted To Know About CIBIL - www.propertiesandloans.comBhavya Sahni
CIBIL is an organization that tracks individuals' credit histories in India and assigns each a CIBIL score. This score is used by banks and financial institutions to assess loan applications. An individual can check their CIBIL score online for a nominal fee. The score ranges from 900 (supreme) to below 500 (no hope) and impacts what types of loans and interest rates one qualifies for. Maintaining a good credit score involves paying all bills on time, not overusing credit cards, and maintaining a diverse credit profile with a mix of loans and low credit utilization.
1. CIBIL is India's first credit information bureau established by SBI and HDFC with 40% stake each to maintain credit histories and provide credit reports to members.
2. It collects and disseminates credit information on both individual and corporate borrowers from its members in the form of Commercial and Consumer Credit Information Reports.
3. RBI guidelines recommend diversified ownership of credit bureaus with no single entity owning more than 10% initially and 5% over time, which CIBIL has implemented.
Strategies for Marketing High Ticket Housing LoanSovan Kundu
This document discusses strategies for State Bank of India (SBI) to market high-ticket housing loans in Kolkata, India, with an emphasis on partnerships with builders. It provides background on SBI and describes the methodology used. It then analyzes SBI's current position in the housing loan market, identifies problems with its current builder partnerships, and provides results from a survey of housing loan customers. Finally, it performs a SWOT analysis and provides recommendations, including decreasing turnaround times, placing loan officers at builder project sites, and improving customer service.
Credit bureaus collect credit and loan repayment history data from creditors to generate credit scores that assess an individual's creditworthiness. Lenders rely heavily on these scores to make informed credit granting decisions and mitigate risk. A low credit score below 300 would result in an automatic rejection for a vehicle or home loan application. While credit bureaus help lenders and encourage timely repayments, they also carry risks like inaccurate information that can unfairly impact credit scores, as well as potential privacy and identity theft issues if data is not properly secured. Major credit bureaus in India that generate credit scores include CIBIL, CRISIL, Equifax, ICRA, and Experian.
This document summarizes a research study that assessed the credit granting system of salary loan programs offered by two specialized government banks in the Philippines - Land Bank of the Philippines and Development Bank of the Philippines. The study aimed to evaluate the effectiveness of the credit granting system with the intervention of partner institutions, and determine its relationship to the financial performance of the salary loan programs. Data was collected through surveys of bank employees, partner institution representatives, and salary loan clients. The results found that while diligently executed, problems could arise from weak assessment of qualified borrowers by partner institutions. However, the banks' financial statements still showed the benefits outweighed the risks. The study concluded that eligibility criteria, partner institution competency, and credit controls should be
The document discusses guidelines published by the Reserve Bank of India (RBI) for regulating peer-to-peer (P2P) lending platforms. It provides definitions of key terms like peer-to-peer lending and how P2P platforms work. It notes that the RBI guidelines require P2P platforms to register as non-banking financial companies (NBFCs) and addresses common questions around the guidelines. It also discusses best practices for investors to reduce risks when participating in P2P lending.
The document discusses the various sources of income for commercial banks in India. It states that banks earn interest income from loans and advances as well as investments. Their non-interest income comes from fees, trading profits, foreign exchange operations, and other miscellaneous sources. Recently, banks have seen slower growth in income due to lower interest rates. Their income is also increasingly coming from investments in government securities rather than loans, though this strategy could undermine their core lending functions over the long run. The document advocates for banks to focus on boosting their fee-based non-interest income through better customer service and new fee-based product offerings.
Nirav Modi, an Indian jeweler, is being investigated for an alleged $1.8 billion fraud at Punjab National Bank (PNB). The fraud involved the unauthorised issuance of Letters of Understanding by PNB employees to overseas branches of other Indian banks on behalf of Nirav Modi's companies. This allowed Nirav Modi's companies to take large loans abroad without required collateral. The scam began in 2008 and continued until being discovered in January 2018. Nirav Modi and his family are believed to have fled India before the case was registered. The fraud is considered India's biggest bank fraud to date.
The document provides an overview of the digital lending guidelines issued by the Reserve Bank of India (RBI) in September 2022. The key points are:
1. The guidelines aim to regulate the growing digital lending landscape in India while protecting customer interests. They apply to all regulated entities like banks and NBFCs, as well as their lending service provider partners.
2. The guidelines focus on customer protection, transparency requirements for regulated entities, and the roles and responsibilities of lending service providers.
3. Regulated entities must ensure loan disbursements and repayments are made directly to customer bank accounts, without involving third party accounts. Fees and charges must also be paid directly by regulated entities to partners
The document outlines the history and development of credit reporting in India. It discusses how the Credit Information Bureau (India) Ltd (CIBIL) was established in 2000 after the discontinuation of an earlier credit information scheme. The Credit Information Companies Act was passed in 2005 to regulate credit information companies and protect consumer privacy. The Reserve Bank of India was given powers to authorize and oversee credit information companies and issue regulations regarding their operations and responsibilities.
Understanding Your Credit Report and ScoreSpringboard
Information about what’s on a credit report, how it gets there, how a credit score is calculated, and how to develop good financial habits. Understanding credit and knowing where you stand are vital to protecting yourself from predatory lending by unqualified or unscrupulous lenders offering costly or unstable loan products.
The Credit Information Bureau (CIB) in Bangladesh collects credit data from financial institutions to create credit reports on borrowers. These reports provide the borrowers' credit history to help financial institutions make prudent lending decisions. However, some argue CIB reports are now impeding credit market development due to unexpected side effects. As a standard global practice, credit bureaus collect payment history data from various sources to create reports that help assess credit risk, but do not rate borrowers or determine creditworthiness. The legal powers and data collection practices of credit bureaus vary by country due to differing laws and oversight.
P2P lending –a “financial intermediary in social democracy” – indian scenarioPrashanth Ravada
This document discusses the emergence of peer-to-peer (P2P) lending as a new financial intermediary model in India. P2P lending platforms allow individuals and businesses to access loans at lower interest rates compared to traditional lenders. The model provides a new investment opportunity for retail investors. The document notes that India's rural and semi-urban areas are underserved by traditional banks and have high reliance on informal lending. P2P platforms could help expand access to credit for small businesses and individuals in these areas by using an online platform to efficiently connect lenders and borrowers. The document examines the role and process of P2P lending in India and how it might contribute to financial inclusion.
The document discusses Know Your Customer (KYC) norms in India. It provides an overview of KYC, including what KYC is, its objectives, types of KYC like C-KYC and e-KYC, key requirements and criteria, documents required from customers, and risks of non-compliance. It also outlines the steps taken by the Reserve Bank of India to ensure proper implementation of KYC policies across banks and financial institutions in India.
Executive summary of sme activities of brac bank limitedWINNERbd.it
BRAC Bank Limited is a commercial bank in Bangladesh that was established in 1999 and began operations in 2001. It provides loans and other services to small and medium enterprises across Bangladesh. As of April 2009, BRAC Bank had provided loans totaling 10,000 crore taka to 265,000 small business clients. The bank focuses on financially supporting small businesses and entrepreneurs through loan programs for amounts between 3 to 30 lacs taka. Loan officers conduct in-person meetings with potential clients to evaluate businesses and provide door-to-door service.
A project report on credit dispensation by commercial banks to the personal s...Babasab Patil
A project report on credit dispensation by commercial banks to the personal segment with special emphasis on loan against property lap By Babasab Patil
IDBI gives news ways for funding your homeAnil Surma
IDBI Bank provides several options for home loans including loans for house construction, purchase of ready homes or plots, renovation, and balance transfers. Eligible applicants include salaried and self-employed individuals as well as NRIs. IDBI offers maximum funding, attractive interest rates, and personalized service. Additional products linked to home loans are also available.
A powerful presentation on non performing assets which very much influencial when presented before others. Being a law student, I myself created the presentation and presented before the elite authorities which impressed them to a larger extent.
A compiled detail version of EY Customer Segment Offerings to these group of people - Migrant Workers, SMEs, Entrepreneurs, The Future Silver Economy, Rural Agri-Laborers, Students Studying Abroad, Non-Profit Organizations (NPOs), Gig Economy Workers, SINKs & DINKs and NSF
GYANM GENERAL AWARENESS - MAY 2018 ISSUE - ENGLISH VERSION Grover's Gyanm
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Aggressive recovery practices make a comeback as loan defaults begin
1. 06/10/2020 23:55:51 [BQU] BloombergQuint.com
Aggressive Recovery Practices Make A Comeback As Loan Defaults Begin
By Vishwanath Nair
(Bloomberg Quint)
Imagine this. You are fast asleep after a long day of work from home and at 2 a.m. your mobile phone rings. The
caller is loud, abusive and refuses to listen to anything you have to say. What do they want? Make a Rs 5,000 worth
repayment by tomorrow afternoon to avoid further phone calls.
That’s just one example of the recovery practices being employed by non-bank lenders, many of whom have
aggressively given out unsecured credit under products such as ‘payday loans’, among others. With the economy
deteriorating, the proportion of defaults has risen for these lenders, many of whom operate digitally.
Aggressive recovery practices in the Indian retail loan market were last seen during the 2008-09 crisis. At the time,
private lenders that had rushed into unsecured loans turned to questionable practices to recover dues as defaults.
The episode prompted regulator Reserve Bank of India to lay down a strict Code of Conduct for recovery agents.
More than a decade later, defaulting borrowers are once again complaining about harassment, this time from
digital lenders.
According to five borrowers who spoke to BloombergQuint, fake legal notices, abusive messages on Whatsapp
and calls to relatives are some of the tactics being used by recovery agents in the middle of the pandemic.
The Harassment
Sandeep Kumar, a 23-year old student who studies computer science in a college in Bhubhaneshwar, had
borrowed Rs 1,250 from mPokket, an instant digital loan service catering to college students. Kumar claims that
under the national lockdown he had to move back home with his parents in Jamshedpur and was not available on
campus. Kumar could not repay his dues because of lack of funds.
After recovery agents started calling him for repayments, members of his family and his immediate friend circle
also started receiving messages regarding his loan.
“These agents call 40-50 times a day and often are very rude. They have threatened me that they will make my
CIBIL score fall, which will make it difficult for me to borrow money in the future,” Kumar said. He also claims that,
in a separate call, a recovery agent threatened to manipulate Kumar’s credit score by seeking multiple credit
information requests with CIBIL. This is typically seen as a credit rating red flag that a customer is trying to
desperately borrow money.
Pravin Kalaiselvan, a 25-year-old Mumbai resident who had borrowed Rs 15,000 from digital lender CashBean,
claims that the company called his father on the due date of repayment for missing the deadline. Since Kalaiselvan
runs a travel agency, he faced some short-term cashflow issues in the middle of the national lockdown. He has
since repaid all his dues, he said.
“I had not provided them with my father’s number as a reference and yet there were calls made to him. It is
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Bloomberg ® Printed on 06/18/2020 Page 1 of 3
2. completely illegal to approach family members on the due date for delaying payment by a few hours,” Kalaiselvan
said.
Another borrower, who spoke on the condition of anonymity, shared with BloombergQuint a copy of a “legal
notice” sent to him by a recovery agent working for CashBean. The note, which carries an RBI stamp and states that
he would be referred to the Central Bureau of Investigation, which will take action against the borrower under
Section 488 of the Indian Penal Code.
“We are continually calling my client and so many massages (sic) so many notices issued but no response from
customer side, we provided to the customer 15 days loan but fail to make the payment, and our recovery agent
continually follow up, but we are not received customer payment,” the note said.
While the RBI has permitted lenders to offer a moratorium on repayments between March and September, these
borrowers said the lenders had not agreed to extend the relief to them.
Together these borrowers have formed a group called Save Them India, which is aimed at providing support to
borrowers who are facing some form of harassment from lenders. The group, consisting of around 300 such
borrowers, also provides legal services necessary.
mPokket did not respond to queries mailed on Tuesday.
In an emailed response, CashBean, which is run by PC Financial Services, said that it had been conducting an
internal investigation into complaints against recovery measures which did not meet the company’s standards.
“Company has already conducted a detailed investigation into the complaint relating to sending fake
letters/notices and findings against the concerned outsourced employees have been shared with their employer
(i.e. relevant third-party contractor) and termination proceedings and FIR have been done accordingly,” a
representative for CashBean said in the email.
The company also submitted a detailed investigation report to the RBI on April 7, it added.
Turn In The Loan Cycle
These smaller non-bank lenders, including payday loan providers, have had a good run over the last few years as
they served customers which banks and large NBFCs typically avoid. Self-employed borrowers, college students,
those dealing with temporary unemployment, have all actively tapped digital lenders to finance their immediate
needs. These companies tend to charge higher interest rates but provide small cash amounts instantaneously to
customers for time periods as short as two weeks.
While large private banks and NBFCs have also been pushing unsecured credit aggressively, many of them rely on
data of existing customers to make lending decisions. They also claim to lend to the better-rated customers,
leaving smaller newer NBFCs to lend to first-time borrowers and those with weaker credit track records.
It is the younger, perhaps first-time borrowers that will face the brunt as the loan cycle turns.
Students and young professionals probably do not realise that borrowing short-term funds at huge interest
rates has a compounding effect on their financial health. Young people who have urgent cash needs and no
other option could use these applications to borrow money, but there has to be a clear repayment plan in
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Bloomberg ® Printed on 06/18/2020 Page 2 of 3
3. place.
Amol Joshi, Certified Financial Planner & Founder, PlanRupee
According to the head of a digital lender, who spoke on the condition of anonymity, defaulting customers can fall
into two categories, either they “promise to pay” or “refuse to pay”. In the first category, the lenders have some
hope of recovery in the near future and customers can be sent regular reminders. However, customers who refuse
to pay have either switched off their phones or have moved somewhere they cannot be traced.
The number of customers who are refusing to pay has risen from 4-5% earlier to nearly 20% for the industry, the
lender estimated.
No formal data is available either on the loan books of these lenders or default rates since most of them are
unlisted.
Code Of Conduct
After the experience of the 2008-09 period, the RBI had put down rules on recovery practices.
The regulator allows non-bank lenders to collect repayments through external agencies under a fee model.
However, as per guidelines the regulator issued in November 2017, the lenders need to have a board-approved
code of conduct, which must be followed by such agencies. The lenders must also conduct due diligence into an
agency, before employing its services.
The banking regulator, however, clearly says that the presence of a third party service does not absolve NBFCs of
their duties and customers have the right to initiate legal proceeding against them.
To close loopholes which may remain, the Digital Lenders Association of India, an industry body, recently came up
with a revised code of conduct to control aggressive recovery practices.
“...there is a need for industry participants to maintain a strong code of conduct in order to prevent the rise of
unscrupulous practices that could cause harm to the industry by reducing the confidence of customers, regulators
and other market participants,” the code said.
The code of conduct mandates that each of its members have a fair practices code which must be followed by
people directly employed by the company and third-party agencies. It also requires members to adopt ethical
practices across its product and operations that treat their customers with dignity and respect and not resort to
harassment or intimidation.
According to Anuj Kacker, co-founder, MoneyTap, it was essential for the industry to come up with the code of
conduct to ensure that the regulator does not end up painting the entire digital lenders community with the same
brush.
“We want to ensure that if and when the regulator brings in any additional norms to curb such practices, it is not
detrimental to the rest of the industry, which is following healthy recovery practices,” Kacker said.
Vishwanath Nair
-0- Jun/11/2020 03:55 GMT
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This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance LP ("BFLP") and its
subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP with
all the global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. BFLP, BLP and their
affiliates do not provide investment advice, and nothing herein shall constitute an offer of financial instruments by BFLP, BLP or their affiliates.
Bloomberg ® Printed on 06/18/2020 Page 3 of 3