Para Banking Activities:
Para banking activities are the activities that are done by a Bank apart from its normal day to day activities (like deposit, withdrawal, etc.). In the banking awareness section, candidates have to cover many topics to crack the bank exams. The topics include banking history, types of accounts, types of cards, banking regulations & acts, etc. Among these para banking activities is one of the important banking awareness topics. So, candidates should prepare all the topics with a dedication to score maximum marks in the banking awareness section. Here we have added the definition of para banking activities, their purposes, and the list of important para banking services. So, go through this article completely and know about the para banking activities.
List of Important Para banking Services:
The para banking activities will differ from the normal bank works. Global Debit Card, Global Credit Card, Bancassurance, Life insurance products, Non-life insurance products, cash management are examples of para banking activities. Here is the list of important para bank services of the commercial banks.
- Sponsor to Infrastructure Debt Funds
- Investment in Venture Capital Funds
- Insurance business
- Portfolio management services
- Pension fund management
- Mutual funds business
- Money market mutual funds underwriting of bonds of PSUs
- Retailing of Government Securities
- Referral Services
- Safety Net Schemes
- Primary Dealership Business
- Equipment leasing, Hire Purchase business, and Factoring services
Purpose of Para Banking Services:
Here is the purpose of para banking services.
- To provide a framework of rules/regulations/instructions to the Scheduled Commercial Banks for undertaking certain financial services or para banking services as permitted by RBI, excluding the issue of credit, debit, and pre-paid cards for which a separate Master Circular has been issued.
- Banks should adopt adequate safeguards and implement the following guidelines in order to ensure that the financial services or para banking activities undertaken by them are run on sound and prudent lines.
So candidates know complete details about the para banking services here. In the exam, you can get questions like, what is par banking, the purpose of para banking, examples of para banking, etc. So, be thorough about the para banking services.
Here we have listed out the important FAQs regarding the para banking services.
Q: What are the para banking services of a commercial bank?
A: The para banking services are the works of bank apart from their normal day to day branch works.
Q: What are the examples of para banking services?
A: Some examples of the para banking services include Bancassurance, mutual fund business, investment in venture capital funds, Retailing of Government Securities, Safety Net Schemes, Referral Services, etc.