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CÓMO EMPEZAR DE NUEVO | Juan Pablo Lerman

CÓMO EMPEZAR DE NUEVO | Juan Pablo Lerman

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National Income

upsc

00:00:03

N Very Good Morning and Good Afternoon You

00:00:05

who are

00:00:09

studying the topic of UFC Non Banking Finance first

00:00:12

and

00:00:15

we will study different topics of Banking in

00:00:17

today's class lecture So Latest

00:00:20

Start

00:00:24

Banking Finance Company A company which

00:00:29

provides finance. But it is not a bank,

00:00:32

it is called a non-banking finance company.

00:00:37

What is said, what kind of company

00:00:40

provides finance, but it is not a bank.

00:00:44

Many such sarees will be

00:01:09

formed under the Company Regulation 1956.

00:01:12

Remember this

00:01:13

because the provisions of the Company Act 1956.

00:01:17

Now it is said that the new company has been formed under Act A.

00:01:20

If any NBFC is divided now, then it will be

00:01:23

formed under the new Act, the only difference is that there is nothing else, do

00:01:26

not get confused,

00:01:30

Business of Giving Loans and Advances,

00:01:34

Give and Acquire Shares, Stocks, Bonds,

00:01:38

Debentures. And in Government securities which are

00:01:41

issues, Government and other local

00:01:42

bodies means buying and selling,

00:01:47

buying and selling,

00:01:50

all these are done by this organization.

00:01:54

Next is this leasing of yours, you have to give something there, you

00:01:58

want to buy there, like Bajaj

00:02:00

Finance gives you There is a power to send things on lease,

00:02:04

Hire Purchase, Hire Purchase also means that you are hiring something, you are taking

00:02:08

something there, you are

00:02:11

buying it there, you are

00:02:14

also involved in the business of insurance, there

00:02:27

is a lot of difference in the multi level marketing company.

00:02:29

In which the

00:02:31

public's money is collectively added.

00:02:33

Under the Collective Instrument, the public's money is

00:02:36

added,

00:02:50

this means that

00:02:53

people's money is being invested by adding it. This is an example of

00:03:08

one type of chit fund.

00:03:11

Invested in a company, it is an

00:03:12

example of Chit fund you understand no in

00:03:17

this way friends

00:03:20

NBS non banking finance company in India does

00:03:26

different business in different groups in this

00:03:28

now NFC is not a

00:03:38

banker they are not working iron agriculture

00:03:41

company does not do this for agriculture

00:03:46

right It makes it easier for the industries.

00:03:49

It

00:03:51

is basically a 17 banking company which makes it easier to transact money like a bank. It makes it

00:04:00

easier to transact money like a bank.

00:04:05

Nav Nidhi Scheme and Chit Fund are quite similar.

00:04:08

Child is asking. What are Nidhi funds, are

00:04:11

they quite similar? In fact, they are

00:04:12

also called Nidhi companies. Such

00:04:14

Chit funds are also called Chit funds and not Nidhi companies.

00:04:18

Son, remember to be very careful,

00:04:22

friend. MM Multi Level Marketing Company, it works

00:04:26

like Collective Investment Fund.

00:04:30

If it is a normal business of selling products on current basis of

00:04:33

direct marketing then it is

00:04:35

legal, there is no harm in it but it is

00:04:37

just a fraud scheme where the

00:04:41

source of revenue for the company is only to

00:04:43

add customers and only to add members, then it

00:04:46

is a fraud just like that. Multi level marketing company

00:04:48

is a fraud.

00:04:51

Let's go ahead and consider that it is a non-banking finance

00:04:54

company.

00:05:02

Banks alone will not be

00:05:04

able to handle the financial requirements of the entire country so

00:05:13

that every last requirement of the customer can be fulfilled,

00:05:17

which is obviously done by the banks on

00:05:20

such a large scale. It is impossible to pay tax, it is very

00:05:23

difficult, it

00:05:31

is clear,

00:05:36

okay, to

00:06:39

invest, you can do

00:06:43

both of these. To

00:06:46

invest, you can do

00:06:49

both of these. You

00:07:02

can open a savings account in the bank. If you are a

00:07:07

businessman, then you can open a current account.

00:07:11

Anything here. Can't open, ca

00:07:16

n't open anything here Saving

00:07:21

Account Current Account

00:07:34

No Demand Deposit No Time Deposit 10 years

00:07:37

15 years

00:07:51

Please remember the date Secondly,

00:07:55

NFC is not the lesson of your government's current payment system

00:08:02

No lesson of current payment system

00:08:08

Financial payment is available For

00:08:12

example,

00:08:14

Paytm Payment Bank has

00:08:18

got a license like a payment bank, which

00:08:20

helps in transferring money from one place to another,

00:08:24

provides remittance, that

00:08:27

is the lesson of your payment and settlement system there. That

00:08:30

debit card

00:08:38

is not for transfer, those who

00:08:41

need money urgently

00:09:05

and also take money from you in long term,

00:09:09

keep this in mind that the

00:09:14

next point which is important for us is

00:09:40

insurance by RBI Credit Guarantee Corporation

00:09:45

Deposit Insurance

00:10:19

up to Rs 500000 It

00:10:23

insures the

00:10:26

amount of Rupees Five Lakh Rupees Are

00:10:29

in Short by Dick's

00:10:33

Deposit Insurance Credit Guarantee

00:10:36

Corporation. Keep in mind that this much

00:10:40

money would have been insured by them.

00:10:45

If the bank collapses, then

00:10:48

what is the responsibility of this organization itself? This is

00:10:52

under RBI. Deposit Insurance

00:10:55

Credit Guarantee Corporation has come. Protest the

00:10:58

money deposited by the innocent public in the banks.

00:11:02

One way to

00:11:04

reduce the insurance is called Deposit Insurance Facility.

00:11:08

Now it is given in the banks.

00:11:41

How is the

00:11:44

government basically protesting you?

00:11:51

Sir, through dicks, I have 20 lakhs lying in my bank

00:11:54

account, only Rs. 5 will be given to

00:11:56

some children,

00:12:00

no, no, as much money as your deposit is

00:12:04

in the bank account and it has become a bank, you will

00:12:07

get only as much money as was

00:12:09

deposited in your account, to

00:12:12

protest you. Yes, it's for the sake of it, wo

00:12:16

n't you miss it a little, the

00:12:56

money has become a dubbed bank, what will you do if our

00:12:59

money is wasted then the

00:13:07

deposits deposited in NBFCs through RBI and DC are not guaranteed, remember the

00:13:15

date

00:13:20

next point sir and what is the regulation sir? It's

00:13:22

good, read it and tell me the rules and

00:13:24

regulations. RBI says that to open an NBFC, you have to

00:13:27

first register with RBI

00:13:28

and RBI itself will regulate it and

00:13:32

this question can be asked in the exam.

00:13:34

While registering, you have to follow some prudential

00:13:37

regulations sir. What is the meaning of potential?

00:13:41

Some

00:13:43

rules and regulations to boost one's security for confidence. What is the meaning of

00:13:46

opening of NBFC? How much money will you own? When will you

00:13:49

invest in terms of capital?

00:13:55

What are the terms and conditions? What are the terms and conditions? The

00:14:08

child is asking questions. It's

00:14:14

a lot of love, the question is

00:14:26

ok,

00:14:29

come on man,

00:15:05

maintain RBI latest rules and regulations within RBI registration.

00:15:42

In fact, NBFCs can be

00:15:45

winded up in some extreme cases. Bandh can also be

00:15:48

done. In some extreme

00:15:51

cases, in some

00:15:54

extreme cases,

00:16:00

Okay,

00:16:03

remember this in certain extreme

00:16:06

cases,

00:16:14

in 2021, RBI had come out with some guidelines,

00:16:17

RBI changed the classification of NBFCs,

00:16:23

RBI said that now we will

00:16:26

look at NBFCs based on scale and not type of business,

00:16:53

now it will be known how much power it has. It

00:16:56

will be classified according to what we

00:16:59

call in English, scale based

00:17:01

scale, best, how much scale, at what level are you reducing,

00:17:07

so that the one who is reducing on a higher scale,

00:17:10

tell me one thing, think for yourself, an NBFC which is

00:17:13

reducing on a larger scale. Do

00:17:15

n't need much protection, just

00:17:18

leave him alone, let him live his life in peace, it

00:17:23

is a small NBFC, it is trying to become big,

00:17:27

but some organization which is very

00:17:30

big, you know,

00:17:34

protected

00:17:47

on the special basis of UPSC teacher, if I had been in

00:17:50

any other government exam, then Jai. Mahakal,

00:17:59

come on, study peacefully,

00:18:04

Alation was

00:18:20

initiated in the first October SBI framework, you were

00:18:22

given one year, you have 365 days, do whatever you want to do, you were

00:18:26

given one year, it is implemented from October 1,

00:18:29

meaning the exam is being implemented from October 1, I am telling you this, I am

00:18:32

20 seconds October 2020 We will

00:18:37

introduce them in our country.

00:18:40

Once again in 2022, these were implemented in India

00:18:44

and today the SBI framework has been

00:18:47

introduced in India.

00:18:50

What was the category earlier? How was that old film

00:18:53

that NBFCs which are registered with RBI or

00:18:56

not? Categories were made as to

00:18:58

how they lend, to whom

00:19:02

they lend, whether they are

00:19:04

systemically important non-deposit

00:19:07

holding companies or non-banking finance

00:19:11

institutions or not. Now you will know

00:19:13

sir, what is systemically important,

00:19:17

which is important for the system. Yes, if any

00:19:20

NBFC becomes a fraud or if the

00:19:24

financial condition of the NBFC is fulfilled, then

00:19:27

how will our entire banking

00:19:30

system, our entire NBFC get its system,

00:19:33

which we call, you are big, you

00:19:36

fail, you are big, you fail, TBTF.

00:19:42

Like SBI is TVTF, bank which is

00:19:45

TVTF, HDFC is TVTF, if

00:19:48

anything happens to it, the whole banking system will be

00:19:52

burnt, it will be a storm, okay, it will be a

00:19:55

whirlwind, ok so they have you

00:20:00

protest dem and don't let them fail date.

00:20:03

Government

00:20:04

in fact, there are some more regulations for them,

00:20:08

they have to keep so much capital, they have to

00:20:11

keep so much risk weighted assets, which means they have to

00:20:14

keep so much money separately,

00:20:34

they have to keep that much capital separate

00:20:37

because who knows whether the opposite party has paid

00:20:39

or not. If the money has been paid, then you must have the money. Know whether the

00:20:44

other party has paid the money or

00:20:47

not. Protect yourself from the risk.

00:20:50

Keep some money with you beforehand, right? This is the principle for

00:20:54

your non-banking finance company and not for

00:20:57

banks. For this also the principle is

00:21:00

that keep the money with you by adding it to the capital.

00:21:03

Keep the money with you by adding it to the capital. Now

00:21:08

understand this thing

00:21:12

that if it dips then there will be a

00:21:16

big problem in our country,

00:21:19

hence the same thing is repeated again

00:21:23

and again. I am repeating the point because what has the

00:21:28

government done? The government has

00:21:31

put them in multiple categories. First I will

00:21:34

explain the new system and then what is the old system.

00:21:51

Here you are looking at the scale. Scale

00:21:54

means level. You are looking at level one level.

00:21:57

Level Three Level Four Hero is the red colored level,

00:22:04

this actually does not mean that there is no

00:22:06

organization here at present, there will be that

00:22:10

organization which will be most

00:22:13

important according to the current system of our country, which is

00:22:17

going which is very

00:22:21

helpful. On this important, there will be

00:22:27

maximum rules, regulation, terms

00:22:30

and conditions on the current Indian NBFC system, then below that there are

00:22:34

NBFCs which are your upper layer, second most

00:22:39

important 25 to 30 NBFCs,

00:22:42

we will keep them in this category, here we will be

00:22:46

second like banks. Whatever is there, in this we will

00:22:49

create rules and regulations like a bank, just

00:22:51

like we save banks from sinking, we will

00:22:54

also save them from sinking,

00:22:57

okay, there is a

00:23:00

little relaxation in that, but here

00:23:03

you get to see that NBFC has

00:23:06

come from middle level NBFC. Which is obviously

00:23:11

important in our system but is

00:23:12

not that much important and fourth is

00:23:17

your

00:23:18

base layer. Base layer means give at

00:23:41

least thousand crore rupees.

00:23:45

Sorry minimum thousand maximum thousand

00:23:48

crore amount was mentioned

00:23:54

here. There is the least regulatory intervention

00:23:58

because the capital size is small, now it has

00:24:01

become bigger, the middle layer has

00:24:04

more than thousand crores, their size starts increasing, hence

00:24:08

more strict

00:24:11

terms and conditions are imposed on them. This thing is remembered by the caste so

00:24:15

that what is there is not.

00:24:18

If there is any financial crisis within NBFC,

00:24:19

we can rock it and

00:24:22

can protest. If there is any

00:24:25

financial crisis within NBFC, we

00:24:27

can rock it and control it. Remember this.

00:24:30

Next important thing is

00:24:33

yours. This is the third category,

00:24:40

which, like banks, is governed by rules and

00:24:43

regulations

00:25:04

as to how much risk they are exposed to. The most important of them will

00:25:13

keep the NBFC under its direct supervision in the upper layer. Remember this,

00:25:16

once an organization is in the upper layer.

00:25:19

Even if its deposits reduce later on,

00:25:22

it will still remain in the Apar layer for 5 years

00:25:25

so that RBI

00:25:29

can assure that the NBFC does not fail.

00:25:32

Remember this,

00:25:35

on whom is this applicable

00:25:38

through RBI? It is applicable on regulated NBFCs,

00:25:40

next is where there is no

00:25:44

organization currently within

00:25:48

this framework, currently there is

00:25:50

no organization within the top player,

00:25:53

here RBI identifies which is the

00:25:57

most important institution

00:25:59

which we call the most important institution of the country.

00:26:02

Here, RBI

00:26:05

makes special conditions, extremely high

00:26:08

capital, it is a very high capital

00:26:10

requirement, okay, apart from that,

00:26:13

friends, the biggest problem is

00:26:15

that once the categorization is done, RBI will

00:26:19

have to bring a definition on it,

00:26:23

note categories in RBI, other anti-in The Top Player

00:26:25

Coming Ahead IT Country Note Perceive Other

00:26:27

Systemic Risk with Respect to NBFCs

00:26:29

Hindi Upper Layer Among the

00:26:32

good

00:26:34

NBFCs in the upper layer, we did not see any such NBFC which is

00:26:36

capable of creating risk for the entire system, so basically it is

00:26:39

still pending. Saree NBFC NBFC is

00:26:42

kept in immense layer, currently no NBFC is kept in NBFC top player, will definitely

00:26:58

keep it accordingly,

00:27:01

not done,

00:27:10

moving forward,

00:27:12

now you have understood the new definition,

00:27:16

something like this NVS season, did not ask that sir

00:27:21

IRDAI and National Housing Bank HB The

00:27:27

NBFC non-banking

00:27:31

finance companies that have come under them, which

00:27:35

provide insurance, which provide house funding and

00:27:38

loans for building houses, sir,

00:27:41

have they also

00:27:45

come to RBI, they are

00:27:59

not registered, they are

00:28:01

insurance companies,

00:28:21

so they are under direct supervision of RBI. Or it has

00:28:23

not come under regulation. In

00:28:39

earlier times,

00:28:46

five types of business were mentioned according to different types of business. Shares will be seen here.

00:29:13

Your loan company used to retire the security of some company on your behalf,

00:29:22

but it is not specifically prescribed for buying acid. They are

00:29:25

giving loans for things, some people

00:29:28

also want personal loan, education funding is also available, there used to be

00:29:30

very

00:29:33

minor differences between them and today it is

00:29:35

not available, today it has ended, so we are just

00:29:38

looking at them big and fast. We are

00:29:41

not stopping too much on these, we are not getting fixed.

00:29:44

Your Infrastructure Finance Company is

00:29:47

understood from the name that there is a need for money for the infrastructure.

00:29:52

Infrastructure Finance Company

00:29:55

fulfills it. Next is your

00:29:59

investment company,

00:30:01

such an investment company which

00:30:06

buys and sells shares and securities. If the rate is reduced

00:30:11

then the entire system will be shaken and the entire banking and

00:30:15

non-banking finance company's system will be shaken. If the system is shaken

00:30:17

then a lot of problems will be

00:30:19

created. For example, there are many

00:30:36

small companies within Reliance like investment in equity shares, preference shares, debt and loan of group company. Small companies have come to Reliance to

00:30:40

buy shares, hallow the shares and keep them,

00:30:42

preference shares, equity shares, debt or

00:30:45

loan instruments, hallowed different

00:30:48

companies called Reliance Jio, Reliance's

00:30:52

group company Jio Cinema, there are many

00:30:59

things,

00:31:11

I told you,

00:31:13

next is your

00:31:14

infrastructure, debt fund,

00:31:18

IDF.

00:31:20

Infrastructure funds were

00:31:30

provided for a long period of 20 years, 30 years, 35 years, 25 years, like there is an organization named

00:31:34

Infrastructure Leasing and Financial

00:31:36

Services Company named ILF, which is

00:31:39

very famous in India and the second micro

00:31:42

finance institution is that organization which

00:31:45

is So on NBFC,

00:31:47

instead of giving loans to big businessmen, they are

00:31:50

giving loans for small needs. Education loan, loan for

00:31:53

someone who wants to buy a sewing machine,

00:31:55

loan for someone who wants to

00:31:58

open a ready shop, means loan

00:32:01

for small requirement. Remember this, the

00:32:12

management group used to reduce it some time ago.

00:32:25

No son, IRDAI HB is a separate

00:32:28

categorization. Why will the classification come in this categorization of RBI?

00:32:34

Now I am going to tell you,

00:32:40

look at the non-banking finance company factor services. Within finance, factor

00:32:43

services means a middleman

00:32:46

like Victoria. You are providing factoring service, you are

00:32:49

doing less like a middleman. Factoring is an

00:32:52

agreement where any

00:32:53

individual or any company gives his bill of

00:32:57

exchange to the middleman and

00:33:00

transfers it, thereby getting

00:33:05

his short term funding. Retirement is complete, it

00:33:07

means less about buying and selling bills of exchange,

00:33:11

less about getting money in the business.

00:33:15

They do NBFC factor, it means service

00:33:47

where money is collected from the non-banking finance company at

00:33:49

a discount,

00:34:02

which gives you a loan in return. In this,

00:34:06

they have given a guarantee that if they are

00:34:09

taking a mortgage from any of your society, then they will

00:34:11

give the loan to you in the same way, if they will give you the loan by giving some mortgage, then they give you a

00:34:17

guarantee that you will not

00:34:20

get the loan, just you will give your instrument,

00:34:23

whatever asset you have. Put a mortgage because it

00:34:27

becomes a little less specific, hence

00:34:36

your

00:34:38

non-operative financial is different. There is no

00:34:48

active investment here through the financial holding company.

00:34:51

Here, for non-operative purpose, it

00:34:55

means you have kept the money and are sitting.

00:35:03

Non-operative purpose is this and the categorization of

00:35:07

our country. Under

00:35:09

NBFC, it

00:35:14

means non-operative

00:35:19

but you are not actively engaging them in the story,

00:35:22

you have just kept them in the hall, like

00:35:25

Ambani ji has the shares of Reliance and there will be a

00:35:28

company to manage those shares, it will be a

00:35:30

non-operating financial holding

00:35:33

company. Which does not do any operating activities, it just takes the

00:35:38

lion's share of its group's fellow groups,

00:35:45

this is the difference between the two, let's

00:35:49

move ahead,

00:35:51

now the definition of category system

00:36:16

500 crores 500 crores, the

00:36:18

old one has gone, now we have to

00:36:22

remember the new definition, the matter is over. Still,

00:36:24

I have explained to you

00:36:26

and your definition of the NBFC system. The

00:36:33

financial stability of our economics system is

00:36:36

in danger. Okay,

00:36:40

this is also fine. Let's look at some data of Economics Survey 2019-20.

00:36:45

This has been mentioned

00:36:47

in the news many times by shadow banks. This is a relief. Shadow banking is a

00:36:50

concept called 'Ek Dabba Trading' is also a

00:36:52

relief in the news. First of all,

00:36:55

understand shadow banking.

00:36:56

Shadow banking is

00:37:00

applicable on loans which are

00:37:04

given outside the banking system,

00:37:07

where non-banking finance intermediate is Rs.

00:37:42

500 crores. Sir, you said it is correct. I did not understand. Let

00:37:44

me tell you one thing. If you are an

00:37:47

NBFC which has given a loan of Rs 500 crore or

00:37:50

more and the

00:37:53

circumstances of your NBFC are bad then

00:37:55

you are systemically important. Your

00:37:57

financial stability is linked with the development of the country.

00:38:02

Your financial security is linked with the country's economy.

00:38:04

We cannot let it deteriorate. This is your definition of being systematically important for a non-banking

00:38:08

finance company.

00:38:16

Like a bank, the importance of taking loans and

00:38:19

taking deposits is falling outside the banking sector. All the

00:38:21

same

00:38:24

guarantees, going beyond the banking sector, there is

00:38:27

NBFC caste in it,

00:38:34

which is being done by some company which is not a bank

00:38:42

and shadow banking is already quite prevalent in India,

00:38:45

currently India has faced liquidity problem in 2018,

00:39:02

so shadow banks are basically shadow. The banking sector

00:39:05

in our country can fulfill his financial retirement,

00:39:08

here

00:39:11

maximum lending can be given within our country, the

00:39:15

power is there, it is

00:39:18

fine, but many times it is outside the system

00:39:21

and there is no guarantee here. Whether the

00:39:25

person in front will pay the money the day after tomorrow or not,

00:39:27

then it can be a threat to the financial stability of our country. There is

00:39:29

power in

00:39:44

India where we are getting very less

00:39:48

compared to earlier and

00:39:50

in 2015-16 it had become even less.

00:39:53

Since the timely policy was introduced in the country,

00:39:56

so many

00:39:58

people were afraid that now if they

00:40:03

give a loan to someone the day after tomorrow and they do not

00:40:06

repay, then the bankers will be defamed. If the banks will be in trouble, then

00:40:12

banking will definitely suffer. Friends, remember this thing,

00:40:28

NBFCs and

00:40:32

What is liquid? Let's

00:40:36

invest together by adding some money but

00:40:38

everyone doesn't have the knowledge. It doesn't matter. Let's

00:40:40

hire an expert

00:40:42

who has done BA from Harvard

00:40:45

University. Is it okay that he has good

00:40:48

knowledge? Good special. 20 We have years of experience and

00:40:50

for them we will reduce whatever guidance we provide for them.

00:40:54

Okay,

00:40:56

now you also understand how to get into this,

00:41:01

what is MF, such a mutual fund where

00:41:05

our money is being

00:41:06

invested in the instrument, see

00:41:08

my friend. The money story will be invested, it

00:41:10

may be invested in some land, it

00:41:12

may be invested in the shares of the company. If it is

00:41:15

invested in shares,

00:41:16

then you can become the owner of the shares of the company

00:41:22

when you lend it to the company. Answer: You

00:41:27

lend

00:41:36

the instrument to the company, meaning you lend the money to the company,

00:41:39

it will gradually repay you

00:41:41

and also return your principal amount,

00:41:45

which is very easy to get out by selling the debt

00:41:49

because you are giving it. I

00:41:53

invested in a mutual fund. I can transfer it to someone else,

00:41:55

he can send it to someone else, because of this it has

00:41:58

very high liquidity,

00:42:03

hence it is kept in the category of liquid mutual fund,

00:42:07

this is one of your ways to mobilize funding and

00:42:11

collect money in the system. That's why

00:42:14

it is seen separately like this,

00:42:22

since last 3 years we are getting to see in our country

00:42:24

whose region is

00:42:32

what is happening

00:42:56

and the bank has given the loan and the bank is

00:42:58

not getting the loan back then this is the balance seat of the bank

00:43:03

here. Assets here are the liabilities and

00:43:06

this is the balance seat of the company which has taken the loan which is the loan

00:43:09

tractor. Liabilities are here and the

00:43:13

assets are here.

00:43:16

You are getting to see the respective balance seats of both of them.

00:43:18

Now inside the balance seat of the bank which the bank has taken the

00:43:22

loan. It is his asset and the

00:43:25

money deposited in the bank net from the public is

00:43:28

his liability which will have to be paid back to the public and

00:43:29

not on the other hand. The

00:43:33

money deposited with the student company is

00:43:37

their asset and the money they have taken as loan.

00:43:39

They have borrowed

00:43:43

money from them, they are not repaying the loan and there is a

00:43:47

problem in their balance sheet.

00:43:49

Many projects, especially real

00:43:52

estate projects, are started but

00:43:54

they are not completed. Why are they not completed

00:43:57

because it is possible? There is a

00:43:59

shortage of money, maybe the government

00:44:01

approval has not come, the

00:44:03

government also wastes a lot of time in giving approval, the

00:44:04

government also

00:44:07

wastes a lot of time in giving approval,

00:44:09

apart from that the cost of

00:44:12

construction and the cost of production are getting

00:44:15

escalated. Cost of Construction

00:44:19

Cost of Escalation is a flood and because of Cost

00:44:23

of Construction or Cost of Escalation

00:44:25

you get to see

00:44:28

that the project is not completed on time. You know,

00:44:30

such projectors are pending in Noida and near Delhi for

00:44:32

10-10 years. If it

00:44:34

's 10 years,

00:44:44

where will the money come from? Here's a

00:44:47

problem in one balance seat. Here's a

00:44:50

problem in one balance seat. Company Time

00:45:31

61 Tu 90. The

00:45:34

first category is called 'Shama'. The

00:45:38

second category is called 'One'. In this case, the

00:45:41

PC category is called 'One.' In such a situation, you say, okay,

00:45:48

standard, standard

00:46:52

third category, 61 to 90 days, brother, pay the money,

00:46:56

otherwise NBFC will declare you as

00:46:58

NPA, you will declare you as

00:47:00

non-performing asset, after declaring non-performing asset, there

00:47:03

will be penalty and

00:47:04

interest will also be charged on you.

00:47:07

Repay your money as soon as possible otherwise it will become a bed loan.

00:47:12

Okay,

00:47:13

remember this.

00:47:16

Okay, it is

00:47:19

divided into these three categories. It is a

00:47:23

relief that it is divided into these three categories.

00:47:26

First, you have just seen

00:47:36

all the standards.

00:48:04

Second category is yours.

00:48:08

Non Performing Assets were 91 days

00:48:12

till 12 months.

00:48:15

Second one is Doubtful Debt.

00:48:22

Doubtful Debt means you will not know whether the money will

00:48:24

come or

00:48:30

not. This is called

00:49:17

that now the money will not come back.

00:49:21

This money bill will not be able to come back. Forget that

00:49:26

your No more,

00:49:41

in such a situation

00:49:44

you will see

00:49:46

that NPS is divided into three categories.

00:49:49

Loss asset can be declared anytime.

00:50:36

Sub standard category comes under sub standard acid

00:50:39

category.

00:51:24

Okay, till then

00:51:48

how will that farmer repay his loan?

00:51:51

Tell me,

00:51:57

how many seasons of the crop season have been beat? Well, it is

00:52:01

not just one season

00:52:03

and whether the farmers are making their loan payments or

00:52:06

not. Are the

00:52:09

farmers making their payments or not? The

00:52:12

crops which grow for a long time are

00:52:16

there. One crop season is seen for long

00:52:19

term crops, for

00:52:21

long term crops there

00:52:43

is mill power for short term crops.

00:53:12

Firstly,

00:53:14

secondly, even if NPA

00:53:18

happens in our economy,

00:53:21

its biggest problem remains

00:53:23

through it which is associated. The problem is that

00:53:25

confidence in the market is lost,

00:53:27

interest starts increasing, investors

00:53:30

get loans at expensive rates, it

00:53:31

impacts the investors too, and

00:53:33

investors also suffer huge losses,

00:53:37

they incur huge financial

00:53:40

losses for the banks. It is

00:53:42

very difficult to survive in the market which will

00:53:47

negatively impact the economic growth rate of our country. What will the children do?

00:54:07

Okay, so there

00:54:10

is some provision to control all of them or they will continue to grow like this. Well,

00:54:14

if you have invested in a risky area,

00:54:16

then some By name, they are called Basel Norms,

00:54:19

not basic, but Basel

00:54:21

which is a place inside Switzerland,

00:54:26

banking related

00:55:21

is fine there, banking system remembers this thing,

00:55:26

RBI has said,

00:55:30

understand our point, RBI has said,

00:55:33

look at the health score methodology and There is a big

00:55:36

problem, try to reduce the role overseas, due to this the

00:56:17

payment will come slowly and comfortably, it is

00:56:26

okay,

00:56:28

when the loan you have taken is a debt

00:56:31

application, it will mature soon

00:56:35

and

00:56:37

for your continuous existence, you If you are

00:56:39

taking loan again and again of short term

00:56:42

nature then it is called rollover risk.

00:56:47

This is called rollover.

00:56:52

Interest rates can change in future.

00:56:56

Look, if it reduces then it is good. If it floods then

00:56:59

what will you do with the

00:57:01

interest in future? What will you do if the rates go up?

00:57:03

This is a big problem. Let's take the

00:57:13

money.

00:57:27

Like I definitely need it. I want to

00:57:30

buy a bike worth ₹ 200,000. The bike is worth ₹ 200,000. This is an example of

00:57:39

wholesale funding. It

00:57:49

comes in the category of wholesale funding because the

00:57:58

current market situation is very bad. It is bad

00:58:06

and NBFC is in need of money, it is in need of capital

00:58:09

and if capital is very limited

00:58:16

then NBFC will give money to it,

00:58:19

who will invest,

00:58:22

this is the biggest problem, very

00:58:37

big problem,

00:59:00

so in this way it is

00:59:02

immersed in huge financial loss. What is currently

00:59:07

happening

00:59:13

in India?

00:59:22

Okay,

00:59:47

in the Prime Minister's Employment Generation Program, 40% of the accounts become MPs,

00:59:49

then how does the scheme remain continuous?

00:59:52

First of all, for social welfare,

00:59:54

we want poor people to get loans and

00:59:57

assistants, okay then? If that is also a

01:00:00

caste then you have taken a risk on your poor people, there

01:00:02

is nothing big in it, you have

01:00:05

not taken a list by giving money to your big businessmen, you have taken a risk by giving money to small poor people,

01:00:10

right, first thing, this is the

01:00:14

first thing. So the second thing is that

01:00:19

when

01:00:20

you

01:00:22

borrow money in this way, take a loan,

01:00:29

then you see

01:00:32

that if it is not a safe investment, then the

01:00:36

financial problems of NBFCs will increase,

01:00:39

but the government

01:00:41

wants to

01:00:47

promote social welfare. If the

01:00:51

consumers of India should protest,

01:00:55

then the government, if it is dairy, the

01:01:15

statement is correct,

01:01:25

accept depend deposit, a

01:01:30

mistake has been made, correct, you

01:01:55

can buy these

01:01:57

tears here, you can buy this, this is only

01:02:01

correct,

01:02:04

only two.

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UPSC IAS LIVE Prelims to Interview (P2I) 2024 August Batch : https://www.studyiq.com/course-detail/upsc-ias-live-p2i-2024-august-batch Batch Starting on 11th August 2023 | Daily Live Classes at 8:00 AM Hurry Enrol Now : https://www.studyiq.com/course-detail/upsc-ias-live-p2i-2024-august-batch In this lecture (Lec 15) of the Complete Indian Economy series by Ramesh Singh, continue your exploration of the banking sector in India. Dive deeper into the intricate aspects of banking, including financial inclusion, regulatory bodies, and recent developments. StudyIQ provides expert insights and valuable information for UPSC aspirants preparing for the 2024/25 exams. UPSC IAS LIVE Prelims to Interview (P2I) 2024 August Hindi Batch बैच 11 अगस्त 2023 से शुरू हो रहा है | बैच का समय सुबह 8:00 AM Hurry Enrol Now : https://www.studyiq.com/course-detail/upsc-ias-live-p2i-2024-hindi-augut-batch UPSC IAS LIVE Prelims to Interview (P2I) 2024 August English Batch Batch Starting on 11th August 2023 | Daily Live Classes at 8:00 AM Hurry Enrol Now : https://www.studyiq.com/course-detail/upsc-ias-live-p2i-english-2024-august-batch UPSC IAS Long Term Prelims to Interview (P2I) LIVE 2025 August Batch Batch Starting on 14th August 2023 | Daily Live Classes at 8:00 AM Hurry Enrol Now : https://www.studyiq.com/course-detail/upsc-pre-mains-live-long-term-p2i-2025-august-batch UPSC IAS Prelims to Interview ( P2I) 2024 Live Advanced Batch Admissions Closing on 3rd August 2023 | Daily Live Classes at 6:30 PM Hurry Enrol Now : https://www.studyiq.com/course-detail/upsc-ias-p2i-2024-live-advanced-batch UPSC IAS (Mains) LIVE Optional Batches : https://www.studyiq.com/goal/upsc-optionals-live (PSIR, Sociology, History, Geography, Pub Ad, Anthropology, Mathematics, Hindi Literature) UPSC IAS (Mains) PSIR Optional Live 2024 (Comprehensive) Auguat Batch Batch Starting on 16th August, 2023 | Class Timing -1:00 PM To know more visit : https://www.studyiq.com/course-detail/upsc-mains-psir-optional-live-classes-test-series-2024-august-batch UPSC IAS (Mains) Sociology Optional Live 2024 (Comprehensive) Auguat Batch Batch Starting on 16th August, 2023 | Class Timing -1:00 PM To know more visit : https://www.studyiq.com/course-detail/sociology-opt-live-2024-comprehensive-august-batch Uttar Pradesh PSC (Pre + Mains) Live Foundation 2024 Batch 2 Admissions Closing on 7th August 2023 | Daily Live Classes at 6:00 PM Hurry Enrol Now : https://www.studyiq.com/course-detail/uppsc-live-foundation-2024-batch2 Bihar PSC (Pre + Mains) Live Foundation 2024 Batch 2 Admissions Closing on 7th August 2023 | Daily Live Classes at 6:00 PM Hurry Enrol Now : https://www.studyiq.com/course-detail/bihar-psc-live-foundation-2024-batch2 Gaurav Sir Current Affairs https://www.studyiq.com/course-detail/gaurav-sir-current-affairs Complete Static GK by Dr. Gaurav Garg https://www.studyiq.com/course-detail/complete-static-gk-gaurav-garg Banking Awareness (Static) by Dr Gaurav Garg https://www.studyiq.com/course-detail/banking-awareness-static-by-dr-gaurav-garg Vipan Sir Courses - Courses to help you gain an edge with MCQs preparation 10000 MCQs of GA by Vipan Sir https://www.studyiq.com/course-detail/general-awareness-10000-mcqs-by-vipan GS - Dr. Vipan Goyal https://www.studyiq.com/course-detail/gs-by-vipan-goyal Download the App to Subscribe to the Course - https://play.google.com/store/apps/details?id=com.studyiq.android For any doubt, Call 080-6897-3353 or Click here for Whatsapp Chat http://wa.me/917703861353

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