Distinguish between Re-financing and Re-discounting of bills. Explain the details of Bills Re-discounting Scheme of Reserve Bank of India and the Refinance facilities provided by Development Banks in India.

Re-financing and re-discounting are two distinct financial terms in banking and financial management, specifically related to the liquidity management of financial institutions. Both these mechanisms are designed to help banks manage their funds effectively, but they are used in different contexts and have different purposes.

Re-financing refers to the process by which a financial institution (like a bank) borrows funds from another institution, typically a central bank or development bank, to replace or renew existing loans or credit facilities. It involves obtaining fresh funding to pay off or substitute previous borrowings. Re-financing can also be used to reduce the cost of borrowing, extend the repayment period, or adjust terms to improve liquidity management. In the context of banking, refinancing often refers to the re-loaning of money to commercial banks, where the central bank provides funds against approved securities. This process helps banks maintain sufficient liquidity to meet their short-term obligations and continue to operate without disruption.

On the other hand, re-discounting refers to the process where a commercial bank or a financial institution sells or discounts its bills of exchange or promissory notes before they mature to obtain immediate liquidity. Banks or financial institutions often discount bills of exchange that are held by them as part of trade finance. The process of re-discounting involves these financial institutions selling the discounted bills to another financial institution (typically the central bank or a _________ ___ ________ ____ _______.
_______ _______ _____ ________ _________ _____ _______ ____ _____ _________ _________.
___ ___ __________ _______ ______ ___ ___ ______ __________ ________.
___ _______ _______ _______ _________ ________ ___ _____ ___ ________ __________ __________.
_________ ______ ______ __________ ___ __________ _____ __________ _______ __________ ____ _________.
____ _________ ____ ______ _________.
______ ______ ________ ______ ___ _______ _________ ____ ______ _____ ____.
________ _________ ___ ___ _____ ___ _______ ________ ________ ____ ___.
____ ____ ________ ________ ______ _______ _______.
___ _______ ________ ________ __________ ___.
_________ _________ _________ ___ ________ ____ _________ ________ _________ ___.
_______ __________ __________ ___ _____ _____ ____.
_______ ____ ___ ___ __________ _____ __________.
________ ______ ____ ______ ___ ____ _______ _____ __________.
_________ ____ ___ ______ _________ ____.
_________ __________ _______ _______ ____ ____.
___ __________ _______ _________ ____ ____ _________ ____ _____ _________ _________ _____.
_______ ______ __________ ________ _______ _______ ______ _________ ______ ________.
____ ________ _______ __________ _________ __________.
_______ ____ ___ _______ ________.
____ ________ _____ _________ ____ ________ ____ ________.
_____ ____ ____ ____ ________ ___ ___ _______ ______ ________ ______.
_____ __________ ______ ________ _______ ___ ____ __________ ____ ____.
________ _________ _______ _______ _____.
____ _________ _______ ______ ________ ________ _____ ____ ____ __________ __________.
_____ ___ ___ ___ _____ __________ ___.
___ _________ _______ ______ _____ ____ ____ ____ _________ ______.
_______ ________ _________ ________ ____ ________ _________ ___ _______ ____ ____ _____.
_______ __________ ____ ___ ______.
________ _________ ________ ______ _________ _______ _______ ________.
___ _________ __________ _______ _________ ____.
____ _____ _______ _______ _________ ____ _________ ___ ___ ____ ___ ___.
________ ________ ______ __________ ____ _____ ________.
__________ ________ ____ _____ ___ ______ ______ ______ ___.
____ _________ ____ __________ _____.
___ _________ __________ ____ ______ __________ _______ ______ _____ ______.
__________ ___ ___ _________ ________.
____ ____ ___ _______ __________ _________ _______ _____ ______ ____ _________.
___ __________ __________ ____ _____ _______ _____ ____ _______ _________.
_____ __________ ____ ________ ______ ___ __________ _________ _______ _________.
_______ ______ ___ _______ _________.
________ __________ __________ _____ __________.
____ ______ _________ _________ ___ ____.
______ _________ _________ _________ ___ ________ ______.
___ __________ ____ _______ _____ __________.
_________ _______ _______ ________ ________.
_____ ___ ________ _________ ____ _____ _____ ___ __________ _____ __________ __________.
__________ _____ _____ ___ _________.
__________ ___ ___ ________ _______ ___ _____ ____ ____ __________ _______ __________.
_________ ____ _______ _______ ______ ________ ____.
____ ________ __________ __________ ___ _______ ________.
_________ ___ _____ _________ _______ _____ _________ ___ ______ __________ ______ ___.
____ ________ ____ ________ __________ _______ _____ ___ _________.
________ _______ _________ ____ ________ __________ ___ ________.
______ _________ ________ ____ ____ __________.
________ __________ ______ ________ ____.
_____ _____ __________ _________ _________.
_________ ________ _____ ___ _______ ________ _______ ___ _________ __________ ________.
____ __________ ________ _______ ____ ______ _____.
__________ _________ ___ _______ ___ ______ ___ _______.
___ ________ _____ ______ ________ ___ ___ _____ _______ ________.
___ _______ _____ _____ _____.
_______ ________ _____ _____ ______ ____ ___ _____.
___ _________ ____ ________ _________ ________ _____ ______.
_________ ________ ______ ___ ______ ___ ____ _____.
____ _______ _________ ____ _________.
_______ ___ _______ ________ _______ _______ __________ _____ _________ __________.
__________ _______ ____ ___ __________.
_______ _________ _______ ___ _____ ___.
_______ __________ ______ ________ __________ ________ ___ ____ _______ ___ ____ ____.
____ __________ _____ _____ ________.
____ ___ __________ ___ __________ ________ _________ ____ _________ ___.
______ __________ _______ ________ ___ _______ __________ ____.
_____ ___ _________ __________ _______ ____ ____ __________ ______ ______ _________ __________.
____ ___ _________ _______ _____ _____ _______.
______ ________ _________ __________ ________ _____ _____ _____.
_______ ________ __________ ________ _____ ____.
________ _____ _____ ___ ______ ________ ____ ________ ______ _____ _______.
___ ________ ________ ______ ______ ___ ___ _________ __________ ______ _________ _________.
_________ _________ _____ ____ _______ ______.
________ ____ _____ _____ _____ _____ ________ __________ _______ ________.
________ _______ ________ ____ ________ ____ ____ ______ _________.
____ ______ _______ ____ _______ _______ ____ _______.
____ ___ __________ _______ ___ __________ _______ __________ _________ _______ __________.
________ ________ _______ _______ _____ _____ _____ __________ ________ ___ ____.
___ ______ ____ ________ _________ ______.
________ ___ ______ ___ _________.
____ ___ ________ _______ ____ _________ ________ _________ ___.
_______ _____ ___ ________ _________ ______ ____ ______ _____ ______ __________.
___ __________ ____ ________ ________ _________ __________ ______ ____ _________ ________.
_______ ________ _______ __________ ____ _________ _________ ______.
_______ ____ ___ ___ _______ ___ ____ ___.
_____ ______ ________ __________ ______ __________ _______ ___.
______ __________ ____ _____ ___ ___ __________ ________ ______ ____ _______.
_____ __________ _____ _______ ____ ______ _________ _______ ______ ______.
________ __________ ______ _________ _______ ___ _______ _____ ___ ________ ___ _______.
_______ ______ ___ ________ _______ _________ _________ ______ ____ __________.
___ __________ _____ ________ _____ __________ __________ _________ ________ __________ _______.
_______ ________ ______ _________ ___ _____ _____.
_____ ________ _____ _________ __________ ____ __________ ________ _________.
_______ __________ _________ _________ _________ _______ __________.
________ ___ _____ ________ __________ _____ ___.
_______ ______ ______ ___ __________ __________ ________ ____ __________.
____ _______ _______ ________ ______ __________ ________ ___ _________ _________ ______.
____ ___ _______ ____ ____ _____ ______.
________ ____ ___ ______ _________ ______ _________ _________ ____ ______ ____ ___.
____ ___ ___ __________ __________ _____ _________.
______ __________ __________ _____ _________ __________ ________ _________ _____ ________ __________.
___ __________ _______ ________ _________ _____ __________ ____ ___.
_____ _________ __________ _________ ___ _______ ____.
______ __________.
Get Full Answer on WhatsApp