No Grace Period
Unlike a credit card, debit card transactions are on a "pay now"
basis. 2. Limited Protection
Using a debit card may mean we have less protection than we would have with
a credit card for undelivered or defective goods.
Merchant Banking
Merchant Banks are financial intermediaries. They act as intermediaries for
transfer of capital from those who own it to those who use it.
Merchant Bankers provide assistance to the corporate houses for setting up
industries. While banks assist industrial development by providing term loans
and guarantees for setting up units and working capital, merchant bankers play
a different role by assisting Industrial houses in the very formation of the
unit and their horizontal and vertical expansion.
The steps involved in the formation of a company, setting up the plant,
meeting unforeseen situation-legal and other provisions, rising of capital require
expert assistance in various fields. Merchant bankers assist in this process of
coordinating various opportunities and financial options.
Although merchant banking services no longer a part of commercial banking
operations in India a brief account of these activities are provided in this
chapter. These services do not come under the control of RBI, but are regulated
by Securities and Exchange Board of India (SEBI).
However, banks are forming subsidiaries to undertake merchant banking
activity and RBI may be interested in verifying the books of banks'
subsidiaries. SBI was the first Indian Bank to set up a merchant banking
subsidiary, followed by Canara Bank. A number of banks have set up subsidiaries
or separate departments for this business.
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