19-12-2012, 04:16 PM
RESOURCE RAISING NORMS FOR FINANCIAL INSTITUTIONS
RESOURCE RAISING NORMS.pptx (Size: 141.34 KB / Downloads: 18)
term money borrowings
Term money borrowings along with other instruments viz. Term money, CPs, CDs and inter corporate deposits should not exceed 100% of its net owned funds.
Maturity period should be between 3-6 months.
FI’s are free to fix interest rates.
FI’s are eligible to borrow ‘term money’ from Scheduled Commercial Banks and Co-operative Banks only.
commercial papers
All India Financial Institutions that have been permitted to raise resources by the RBI are eligible to issue CPs.
Issue of CPs together with other instruments viz., term money, term deposits, CDs and inter corporate deposits should not exceed 100% of its net owned funds.
The total amount proposed through issue of CPs should be raised within a period of two weeks from the date on which the issuer opens the issue for subscription.
CPs can be issued in denomination of Rs.5 lakhs or multiples thereof.