Question
Which of the following financial activity can be
outsourced by an NBFC? Read the following passage and answer the next 2 question Outsourcing' is defined as the NBFC’s use of a third party (either an affiliated entity within a corporate group or an entity that is external to the corporate group) to perform activities on a continuing basis that would normally be undertaken by the NBFC itself, now or in the future. NBFCs have been outsourcing various activities and are hence exposed to various risks Further, the outsourced activities are to be brought within regulatory purview to protect the interest of the customers of NBFCs and to ensure that the NBFC concerned and RBI have access to all relevant books, records and information available with service provider. Some key risks in outsourcing are Strategic Risk, Reputation Risk, Compliance Risk, Operational Risk, Legal Risk, Exit Strategy Risk, Counterparty Risk, Country Risk, Contractual Risk, Access Risk, Concentration and Systemic Risk. It is therefore imperative for the NBFC outsourcing its activities to ensure sound and responsive risk management practices for effective oversight, due diligence and management of risks arising from such outsourced activities.Solution
Typically outsourced financial services include applications processing (loan origination, credit card), document processing, marketing and research, supervision of loans, data processing and back office related activities, besides others. NBFCs which choose to outsource financial services shall, however, not outsource core management functions including Internal Audit, Strategic and Compliance functions and decision-making functions such as determining compliance with KYC norms for opening deposit accounts, according sanction for loans (including retail loans) and management of investment portfolio .
 Find out which word can be filled up in the blanks in sentence in the same sequence to make the sentence grammatically correct and meaningfully compl...
He has been _______ for quite some time about local basil playing second fiddle to chia seeds.
PCA norms allow the regulator to place certain restrictions such as halting branch expansion and stopping dividend payment. ………&hel...
You are provided with a sentence with one word missing, denoted by a blank. You are presented with four options (A), (B), (C) and (D), identify which of...
Select the most appropriate option to fill in the blank.
Virat Kohli added another feather _____ his cap by his wonderful performance in the one-day match.
The temporary move to give teams the option of making five substitutions per game instead of three should take __________ on a permanent basis.
The ______________ fabric should not be washed in hot water.
Turning around a __________ ship is never easy.
(A) large
(B) small
(C) tiny   Â
(D) huge   Â
Once transportation across long distances made other vegetables easily available, we ______ what was available in our backyards.
Select the most appropriate option to fill in the blank.
City birds are_______than country birds and have stronger immune systems, a new study has found.
