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Banking & Credit :: Frequently Asked Questions

What is Banking Company?

Banking company under PMLA 2002 means a banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies and includes any bank or banking institution referred to in section 51 of that Act. Banking Company includes

  • All nationalized banks, private Indian banks and private foreign banks,
  • All co-operative banks viz. primary co-operative banks, state co-operative banks and central co-operative banks,
  • State Bank of India and its associates and subsidiaries,
  • Regional Rural Banks.

What is a financial institution?

Financial Institution under PMLA 2002 means a Financial Institution as defined in clause (c) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934) and includes a chit fund company, a co-operative bank, a housing finance institution and a non banking financial company. Financial Institution includes:

  1. Financial Institutions as defined in Section 45-I of the RBI Act. RBI regulates and supervises 8 All- India Financial Institutions namely EXIM Bank, NABARD, NHB, SIDBI, IFCI Ltd., IDFC Ltd., IIBI Ltd. and TFCI Ltd.
  2. Insurance companies,
  3. Hire Purchase companies,
  4. Chit fund companies as defined in the Chit Funds Act.
  5. Co-operative banks.
  6. Housing finance institutions as defined in the National Housing Bank Act such as HDFC.
  7. Non-banking financial companies as defined in section 45-I of the RBI Act such asprivate finance companies - motor and general, hire purchase companies, leasing companies, investment companies etc.

What is an Intermediary?

Intermediary under PMLA 2002 includes following persons registered under Section 12 of SEBI Act:-

Stock brokers Registrars to issue Depositories and Depository Participants
Sub-brokers Merchant bankers Custodian of securities
Share transfer agents Underwriters Foreign institutional investors
Bankers to an issue Portfolio Managers Credit rating agencies
Trustees to trust deed Investment advisers Venture capital funds

What is a Chit Fund Company?

It is a company managing, conducting or supervising, as foremen, agent or in any other capacity, chits as defined in Section 2 of the Chit Funds Act, 1982.

What is a Co-operative Bank?

Co-operative bank shall have the same meaning as assigned to it in clause(dd) of section 2 of the Deposit Insurance and Credit Guarantee Corporation Act 1961.

What is a Housing Finance Institution?

Housing Finance Institution shall have the same meaning as assigned to it in clause (d) of section 2 of the National Housing Bank Act, 1987.

What is a Non-banking Financial Company?

Non-banking financial company shall have the same meaning as assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934.

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