Banking Institutions (2)

Whether it’s buying a car, paying medical bills or purchasing furniture, if you’ve had to finance one of life’s big-ticket items, you’ve probably been offered the chance to take out a loan from a finance company. The Standing Committee has sought to revert to its previous position, which is to make the CSR spending mandatory, by including the words shall ensureā€ in clause 135(5) of the Bill that requires companies to spend 2% of the average profits for the previous 3 years in pursuance of their CSR policy.Finance Companies

For filling up senior positions at their outsourcing hubs, outsourcing firms prefer to recruit people having two to three years of experience with banks, financial services firms, finance-related BPOs or with the corporate finance departments of companies.

For regulatory purposes, NBFCs have been classified into the 3 broad categories, (a) those accepting public deposits; (b) those not accepting public deposits but engaged in financial business; and (c) core investment companies (which are exempted from the requirement of obtaining registration from the RBI, except CIC-ND-SI).

Considering peoples’ interest in such programmes, benefit of mobilizing such savings in productive sector, banking sectors’ inability to carry out capital market activities and to meet consumers’ need for credit, government felt the need of finance companies and introduced Finance Company Act, 2042.Finance Companies

V. the book value of debentures, bonds, outstanding loans and advances (including hire-purchase and lease finance) made to, and deposits with subsidiaries of such company and companies in the same group to the extent such amount exceeds ten per cent of Owned Funds i.e. aggregate of the paid-up equity capital and free reserves as disclosed in the latest balance-sheet of the company after deducting accumulated losses, deferred revenue expenditure and other intangible assets.Finance Companies