Friday, April 6, 2012

Drawbacks of Debit Cards

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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