Which of the following defines 'Para Banking' services?
Eligible financial services rendered by banks
Incorrect AnswerServices provided through business correspondents
Incorrect AnswerServices provided to armed forces personnel
Incorrect AnswerUtility services provided by banks
Correct AnswerAll of the above
Incorrect AnswerExplanation:
Para Banking activities that a bank normally involves are Global Debit Card, Global Credit Card, Bancassurance, Life insurance products, Non life insurance products, cash management.
The Para Banking activities are such as insurance business, portfolio management services, to become pension fund managers, mutual funds business, money market mutual funds, underwriting of bonds of PSUs, investment in venture capital funds, etc. Banks must follow the whole set of guidelines as given by RBI.
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By: Yachna