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 .
I. Aimed at benefiting more than 40 lakh beneficiaries with real-time information from the convenience of their homes, the Health Ministry have revampe...
The study observed that the apex bank will continue to exit the extraordinary monetary accommodation which has been in force on the beginning of the pa...
When I was a candidate, the polls said that the majority of voters disagreed in my opposition to the death penalty. Â Â Â Â
...With its stunning coastline, dramatic deserts, and rugged mountains, California offering wide-open spaces for everything from scenic road trips to adren...
The laws need to be taken down into multiple sections, each to apply specific parts of the value chain and in accordance with the Outer Space Treaty
Directions:Â In each question, a part of the sentence is made bold. Below are given alternatives to the bold part at (A), (B), (C) and (D) wh...
In the following question, a part of the sentence is underlined. Below the sentence are three alternatives to the underlined part. Select the alternativ...
Mark is so focused on product details that he can't see the fortress for the trees when it comes to the overall needs of the company.
The core message is that the moments that embarrass is the ones that define us.
Several ministers have been expected to meet the people tomorrow.
