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State Bank Regulations

The Pro Readers > State Bank Regulations

Prudential Regulation Consumer Financing 2

  Summary of Prudential Regulation for consumer 2 We have compiled summary of prudential regulation for consumer financing 2. Separate regulations for credit card, auto loan and personal loan are as follows; Regulations for credit card   Regulation O-1 The banks should take reasonable steps to satisfy themselves that cardholders have received the card and advise them to keep the card safe and PIN secret. Regulation O-2 After cardholders have served a notice that card has been lost or stolen, banks shall be held liable for all the transactions held after said notice. However banks shall be liable for those amounts which are wrongly charged to the credit card...

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Prudential Regulation Consumer Financing 1

  Summary of Prudential Regulation for consumer We have compiled summary of prudential regulation for consumer financing. Consumer financing has three main categories which are defined below; Categories of Consumer Financing:   Credit Cards Cards which allow a customer to make payments on credit. These cards include supplementary cards. Corporate cards are not included in consumer financing. Auto Loans This loan includes loan or financing facilities for purchase of personal vehicle. Personal Loans This loan includes payment to individuals for payment of goods, services and expenses including running finances.   Regulation R-1 Consumer financing to directors, major shareholders, employees and their family members shall be at arms’ length basis. This condition is not...

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Summary of Prudential Regulation-Microfinance Banks

    Summary of Prudential Regulation-Microfinance Banks We have compiled Summary of Prudential Regulation-Microfinance Banks which is as follows: Regulation R-1 Minimum Capital Requirement: MFBs shall maintain a minimum paid up capital (net of losses) of below amounts. Minimum Capital (Rupees) Allowed to operate 1 Billion Nationwide 500 million Specific Province 400 million Specific Region 300 million Specific District   Capital Adequacy Ratio (CAR) = 15% of risk weighted assets of MFB. Regulation R-2 Exposure against Contingent Liabilities Period Contingent Liabilities First 3 years of operation Not exceeding 3 times of its equity Thereafter Not exceeding 5 times of its equity   Regulation R-3 Maintenance of cash reserve and liquidity Period Contingent Liabilities In the form of Cash Reserve Requirement (CRR) Not < 5% of demand and time deposits with tenor...

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