NBFCs and Microfinance Basics

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 Signup and view all the answers

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

Financial institutions that accept deposits and provide loans Signup and view all the answers

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

Enhancing employability Signup and view all the answers

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

Offer risk mitigation and financial protection against various perils Signup and view all the answers

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

By aligning training programs with industry needs Signup and view all the answers

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

Overall economic growth of the country Signup and view all the answers

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

Promoting entrepreneurship Signup and view all the answers

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

By aligning training programs with industry needs Signup and view all the answers

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

Employment opportunities Signup and view all the answers

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

Maintaining personal hygiene and grooming well Signup and view all the answers

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

To demonstrate professionalism and respect Signup and view all the answers

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

To demonstrate reliability and respect for commitments Signup and view all the answers

What does the credit department do in microfinance organizations?

Evaluate loan applications and creditworthiness Signup and view all the answers

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

To respect data protection regulations and client privacy Signup and view all the answers

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

Handling customer interactions and providing services Signup and view all the answers

What is the primary function of Microfinance institutions?

Provide financial services to low-income individuals with limited access to traditional banking services Signup and view all the answers

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. Signup and view all the answers

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

Tailor insurance products to the needs of low-income individuals or microenterprises Signup and view all the answers

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

They serve as informal groups for saving money and mutual support Signup and view all the answers

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

Reserve Bank of India (RBI) Signup and view all the answers

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

By providing small-scale savings accounts to individuals with limited resources Signup and view all the answers

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

Managing loan disbursement, repayment collections, and record-keeping Signup and view all the answers

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

Finance and Accounts department Signup and view all the answers

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

Ensuring compliance with regulatory requirements Signup and view all the answers

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

Risk Management department Signup and view all the answers

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

Verifying documentation Signup and view all the answers

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

Interacting with clients and understanding their financial needs Signup and view all the answers