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.

Refinancing and rediscounting of bills are two important financial mechanisms used by banks to provide liquidity and manage short-term funding requirements. While both processes involve the sale or transfer of financial instruments, they differ in their underlying objectives, procedures, and parties involved.

Refinancing of Bills refers to the process where a financial institution, such as a bank, provides funds to a borrower by using an existing loan or bill as collateral. Essentially, refinancing allows the borrower to replace an old debt with a new one, often under more favorable terms. The borrower may be able to reduce their interest burden or extend the repayment period, thereby improving cash flow. In the context of banking, refinancing typically involves the extension of credit facilities to commercial banks or financial institutions by central banks or development banks to ensure smooth liquidity management.

Re-discounting of Bills, on the other hand, involves the sale of short-term financial instruments like bills of exchange, promissory notes, or other negotiable __________ ___ __________ _____ _______ _________ _______ _____ ______ _________ ________ _____.
__________ ____ ___ ____ ___ ________ ___ ____.
_____ _____ ____ _____ __________ _________ __________.
______ _________ _________ ________ ______ ___ ________.
______ _______ ________ __________ _________ _____.
_____ ____ ______ _____ ______ _____ _____ __________.
________ ____ _______ ____ __________ ________ _______ ___ _________ ________ ________.
_________ ___ ___ __________ _____ _____ ____ ____ _________.
__________ ___ ________ ______ ___ __________.
________ ________ ______ ___ _____ ______ _____ _________ ________.
_________ _______ _______ _________ __________ _____.
_____ _________ _________ ___ __________ ______.
__________ ________ _______ _______ ________ _________ _________ __________ ___ ________ ____ _____.
____ __________ __________ _________ _______ __________ _______ ____ ________ ___ ________ __________.
____ _______ __________ _______ ________ __________ ____ ________ _____.
________ ______ _________ ___ ________ _____ _______ _______ _____ ___ _____.
_________ _______ ____ ________ ___ ____ ________ _________.
___ _____ _______ ________ ____ _________ _________ _____ __________.
____ ________ __________ __________ ___ ___ ________ __________ _________ ______ ______ _______.
_______ _______ ________ ____ ____ ____ __________ ___.
__________ __________ __________ ______ ______ ___ _________ _______ ____ __________ ___.
_________ _____ ______ _______ ____ ______ _______ _________ _______ __________.
__________ ___ _____ ___ ___ __________.
______ _________ _____ __________ _________ ____ _________ _______ ___ ____ ____.
_____ _______ _____ ______ _____ ________ _________ _______ _______ _______.
______ ___ ______ ________ ______ ____ _________ _____ _____ ___ _______ _________.
____ ________ ___ _______ _______.
__________ ________ _____ __________ ________ ___ ___ _________ ________ _____.
___ _______ _______ _________ _________ _________.
____ _____ ______ ___ _____ _______ __________ ________ _____.
___ _____ ____ _____ ______ ____ _________.
___ ___ ___ ____ _________.
___ ______ ____ _________ __________ ______.
_______ __________ ______ __________ __________ ___ _______ _________ ____.
________ ___ ____ _______ _______ __________ __________ _____ ___ _______.
_________ ____ ____ ____ _______ _____ ____ __________.
_____ _________ _________ _______ ________ _______ _____ ____ __________ ________ _____ ____.
___ ________ ______ __________ _________ _______ __________ ________ ______ ______ _____ ____.
____ ______ __________ ________ ___.
______ ______ _____ __________ _______.
__________ ______ _________ ____ _______ _____.
__________ ____ _________ _________ ________ ___ __________ _________ ___.
______ __________ ____ _____ __________ ____ ______ __________ ________ ________ ___.
______ _____ ____ _________ _________.
___ ______ _____ ___ ______ _____ ___ ______ ____ ______.
____ _________ ____ __________ _____ _______ __________ ____ __________ _______ ________.
_____ __________ ___ _______ _______ _____ __________.
_______ __________ ___ ___ _____.
____ _________ ____ __________ ____ _________ ____ _______ _______ ____ _______.
_________ _________ ______ __________ _______ ___ _____ ____ ________ __________ ____ _______.
_______ ________ _______ _________ ________ _______ _________ _______ ________ ______.
_________ _________ _______ _____ ____ ________ _________ __________ __________ _______.
_____ _________ ______ __________ ________ ________ __________ ___.
______ ______ ___ ______ ______ _______ ______ ____.
____ _________ _______ _________ ____ __________ ________ _________ ______ ________ _________ ____.
_________ __________ ____ ___ ________ __________ _______ __________ ____.
Get Full Answer on WhatsApp