Banks should not invest in Zero Coupon Bonds (ZCBs) issued by NBFCs unless the issuer NBFC builds up sinking fund for all accrued interest and keeps it invested in liquid investments / securities (Government bonds). Banks are permitted to also invest in Non-Convertible Debentures (NCDs) with original or initial maturity up to one year issued by NBFCs. However, while investing in such instruments banks should be guided by the extant prudential guidelines in force, ensure that the issuer has disclosed the purpose for which the NCDs are being issued in the disclosure document and such purposes are eligible for bank finance.
Consider the following statements:
1. The Ministry of Rural Development and the Ministry of MSME signed an SoI to support SHG women enterprises.<...
What is the highest insurance premium rate that farmers must pay for Kharif crops under the Pradhan Mantri Fasal Bima Yojana (PMFBY)?
Who inaugurated the Dawki Land Port in Meghalaya's West Jaintia Hills district?
Which format of cricket will be included in the 2028 Olympics?
Recently pixel has launched its first satellite aboard SpaceX. What is the name of the satellite?
Who has been sworn in as the third Vice- President of Nepal?
abrdn, a part of the promoter group of HDFC Life, is selling its entire stake in the firm as part of a block deal.The block sale would fetch abrdn _____...
Regarding Mission Karmayogi, consider the following statements:
I. It is aimed at building a future-ready ci...
Recently, which state has launched its first major education project – ‘Schools of Eminence’?
According to the PwC report titled The Indian Payments Handbook – 2022-27, UPI transactions are likely to reach 1 billion per day by______ , accountin...
