What is dehejia committee?

A study group under the chairmanship of V.T. Dehejia was constituted in 1968 in order to determine “the extent to which credit needs of industry and trade were inflated and to suggest ways and means of curbing this phenomenon”. The committee submitted its reports in September 1969.

What is Kannan committee?

Kannan Committee A committee constituted by the Indian Banks’ Association to examine the relevance of the concept of Maximum Permissible Bank Finance (MPBF) as a method of assessing the requirements of bank credit for WORKING CAPITAL, and to suggest alternative methods.

What is the significance of working capital for a firm?

Working capital serves as a metric for how efficiently a company is operating and how financially stable it is in the short-term. The working capital ratio, which divides current assets by current liabilities, indicates whether a company has adequate cash flow to cover short-term debts and expenses.

Which committee was especially appointed for the intention of granting loans and advances to the industry on the need basis?

The next committee was appointed Tandon Committee 1975, in an intention of granting loans and advances to the industry on the need basis through the study of the development proceeds only in order to improve the weaker section of the people.

What is Nayak committee method?

Turnover method (Nayak Committee norms) Under turnover method, the aggregate fund-based working capital limits are computed on the basis of Minimum of 20% of their projected annual turnover. The borrower has to bring the margin of 5% of the annual turnover of such borrowers as margin money.

What is Janakiraman committee report?

3.11. The Janakiraman Committee, set up in the wake of the securities market irregularities of 1992 reported that there existed a thriving market for repos and virtually all wholesale participants of the money market and not only banks, used repo transactions widely despite there being an explicit prohibition on them.

What are the recommendations of Vaidhyanathan committee?

Based on the recommendation of Vaidyanathan Committee, Government implemented a revival package for STCCS encompassing legal and institutional reforms, measures to improve the quality of management and financial assistance as necessary for their democratic, self-reliant and efficient functioning.

Which year was the Basel I report finalized?

Understanding Basel I It was issued in 1988 and focused mainly on credit risk by creating a bank asset classification system. The BCBS regulations do not have legal force. Members are responsible for their implementation in their home countries.

What is the purpose of working capital management?

The primary purpose of working capital management is to enable the company to maintain sufficient cash flow to meet its short-term operating costs and short-term debt obligations. A company’s working capital is made up of its current assets minus its current liabilities.

What are the benefits of working capital management?

Advantages and Disadvantages of Working Capital Management

  • Ensures Liquidity.
  • Evades Interruptions in Operations.
  • Enhance Profitability.
  • Improves Financial Health.
  • Value Addition.

Which is the committee appointed by RBI to recommend working capital financing?

The Reserve Bank of India, in 1982, appointed a committee under the chairmanship of Marathe to review the working of Credit Authorisation Scheme (CAS) and suggest measures for giving meaningful directions to the credit management function of the Reserve Bank.

What of of Anbc of Regional Rural Bank is earmarked as priority sector lending for micro enterprise?

Within the 18 percent target for agriculture, a target of 8 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher is prescribed for Small and Marginal Farmers….Priority Sector Lending – Targets and Classification.

No. Category
10. Persons with disabilities

What was dahejia Committee of RBI report of September 1969?

In September 1969, Dahejia Committee of the RBI pointed out in its reports that in the financing practice of banks, there was no relationship between the optimum requirements for production and the bank loan. The general tendency with business was to take short-term credit from banks and use it for purposes other than production.

What are the implications of various committee reports?

The various committee report implications are the following: “The study carried out on the credit need of the industry and trade and how that needs inflated and such trends were checked” by the under the chairmanship of Dheja Committee. General tendency was found among the firms to avail the bank credit more than their requirements.

What was the recommendation of the Marathe Committee?

The Reserve Bank of India introduced the term Credit Monitoring Arrangement (CMA) in place of Credit Authorization Scheme (CAS) on the basis of the recommendation of the Marathe Committee in October 1988. (a) A post-sanction security of term loans and working capital limits which were provided by commercial banks will be made by the RBI.

Who was the chairman of the Chakraborty Committee?

Chakraborty Committee: The RBI appointed a committee under the chairmanship of Sukhamoy Chakraborty in order to review and to analyse the working of the Indian monetary system. The report was submitted by him in April 1985. In the report, the Committee presented some suggestions for the improvement of lending activities by the commercial banks.