NBFCs and Microfinance Basics

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What is the primary purpose of the training programs under Skill India?

To develop skills based on industry requirements

How does acquiring improved skills impact an individual's earning potential?

It has the potential to increase wages and incomes

What role does the BFSI industry play in the economy?

Offering financial products, services, and risk protection

Which of the following is NOT a sub-sector of the BFSI industry?

Airlines

What type of institutions fall under the category of 'banks' in the BFSI industry?

Financial institutions that accept deposits and provide loans

What is one of the objectives of the Skill India Mission according to the text?

Enhancing employability

What is the primary function of insurance companies within the BFSI industry?

Offer risk mitigation and financial protection against various perils

How does the Skill India Mission aim to bridge the skill gap?

By aligning training programs with industry needs

Which aspect of productivity does the Skill India Mission aim to enhance?

Overall economic growth of the country

In addition to providing vocational training, what other focus area does the Skill India Mission have?

Promoting entrepreneurship

How does the Skill India Mission contribute to creating a skilled workforce?

By aligning training programs with industry needs

What is one of the benefits of the Skill India Mission as mentioned in the text?

Employment opportunities

What is one of the key aspects of maintaining professional appearance in the BFSI industry?

Maintaining personal hygiene and grooming well

Why is adhering to standard business etiquette essential in the BFSI industry?

To demonstrate professionalism and respect

Why is punctuality emphasized in the business etiquette of the BFSI industry?

To demonstrate reliability and respect for commitments

What does the credit department do in microfinance organizations?

Evaluate loan applications and creditworthiness

Why is it important for employees in microfinance organizations to maintain confidentiality?

To respect data protection regulations and client privacy

What role does the front office typically play in microfinance organizations?

Handling customer interactions and providing services

What is the primary function of Microfinance institutions?

Provide financial services to low-income individuals with limited access to traditional banking services

How does micro-credit differ from micro-savings in the context of microfinance?

Micro-credit provides small loans for individuals to start or expand businesses, whereas micro-savings focus on encouraging a savings culture.

What is the objective of Micro-insurance in the context of microfinance?

Tailor insurance products to the needs of low-income individuals or microenterprises

What characterizes Self-Help Groups (SHGs) in the context of microfinance?

They serve as informal groups for saving money and mutual support

Which regulatory body oversees Non-Banking Financial Companies (NBFCs) in India?

Reserve Bank of India (RBI)

How do Micro-savings contribute to encouraging financial inclusion in the microfinance sector?

By providing small-scale savings accounts to individuals with limited resources

What are the primary responsibilities of the operations department in a microfinance organization?

Managing loan disbursement, repayment collections, and record-keeping

Which department is responsible for handling financial transactions and accounting activities in a microfinance organization?

Finance and Accounts department

What is the main function of the risk management department in a microfinance organization?

Ensuring compliance with regulatory requirements

Which department in a microfinance organization is primarily responsible for assessing the creditworthiness of borrowers?

Risk Management department

What is a key responsibility of a Microfinance Executive related to loan processing?

Verifying documentation

What is the role of a Microfinance Executive in client relationship management?

Interacting with clients and understanding their financial needs

Learn about Non-Banking Financial Companies (NBFCs) and Microfinance institutions, including the services they offer and their regulation. Explore basic terminologies used in Microfinance.

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