Para Banking & Financial Services by Banks - Detailed Study | MODULE D: FINANCIAL PRODUCTS AND SERVICES
Guidelines on Para Banking & Financial Services Provided by Banks Introduction Para Banking refers to the services that banks provide apart from their core banking operations (like accepting deposits and lending). These include a variety of financial services such as insurance, asset management, and advisory services. The Reserve Bank of India (RBI) has laid down specific guidelines that banks must adhere to when engaging in para banking activities. Guidelines on Para Banking & Financial Services The RBI issues strict norms to ensure that para banking activities do not compromise the financial health of banks. Some key guidelines include: Banks must obtain prior approval from RBI before undertaking certain para banking activities. Investment in ...