Para Banking Services

Q.  Which of the following defines 'Para Banking' services?
- Published on 08 Feb 17

a. Eligible financial services rendered by banks
b. Services provided through business correspondents
c. Services provided to armed forces personnel
d. Utility services provided by banks

ANSWER: Utility services provided by banks
Banks can undertake certain eligible financial services or activities either departmentally or by setting up subsidiaries is called Para Banking.

We could also define Para banking activities as the activities which are done by a Bank apart from its normal day-to-day activities (like deposit, withdrawal etc.).

Para Banking activities that a bank normally involves are Global Debit Card, Global Credit Card, Bancassurance, Life Insurance Products, Non-life Insurance Products, Cash Management.

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