What is dehejia committee?
Dehejia Committee: The National Credit Council (NCC) was constituted in October 1968, under the Chairmanship of V. T. Dehejia, to examine how far the credit requirements of trade and industry were inflated and, at the same time, to suggest some measures on the basis of its findings.
Which of the following is the findings of dehejia committee?
The important findings of the committee are given below. 1. Higher growth rate of bank credit to industry than the rise in industrial output. 2.
What is Tandon committee report?
Tandon Committee Report emphasized need to correlate bank credit to the business/ production plans and own resources of borrowers. Entailed a shift from ‘security based’ to ‘need based’ approach to bank credit. The new norms formed the basis of bank lending for working capital requirements.
What is Nayak committee method?
The method of assessment of working capital limits up to Rs. 2 crore (Rs. 7.50 Crore for SME) assessed under turn over method is called as limits assessed under Nayak Committee Norms. The following types of loans and advances are considered as working capital finance.
What are the dimensions of working capital management?
Dimension I: It is concerned with formulation of policies relating to risk, profitability and liquidity. Dimension II: It is concerned with the decision about the composition and level of current assets. Dimension III: It is concerned with the decision about the composition and level of current liabilities.
Which committee was set up on the cash credit?
Chore Committee: In 1979, the Reserve Bank of India set lip a Working Group in order to review the cash credit system under the chairmanship of Shri k. B Chore (Chief Officer of RBI, Dept. of Banking Operations and Development).
What is Nayak Committee method?
Why was the Tandon committee formed?
The Tandon Committee was formed with the objective of framing guidelines for commercial banks for ensuring proper end-use of funds, for supervision and follow-up of bank credit. You can read about the RBI – Reserve Bank of India [UPSC Indian Economy Notes] in the given link.
What are the methods suggested by Tandon committee for working capital assessment?
The Group suggested the norms in relation to (i) Raw Materials; (ii) Stock-in-process; (iii) Finished Goods; and (iv) Receivables and Bills purchased on the basis of time element, i.e., in terms of month. These norms represent the maximum level for holding inventory and receivable.