Economics, Commerce and Trade Management: An International Journal (ECTIJ)
Pass through certificates
1.
2.
3.
4.
5.
6. Bank Issues PTCs Borrower Approaches Bank SPECIAL PURPOSE VEHICLE CREATED NBFCs & MFs Lend Money Borrower Repays NBFCs & MFs How PTC’s work!!
7. PTCs are also used to ensure that banks maintain their liquidity as per the statutory guidelines of the Reserve Bank and at the same time continue lending. We will discuss more about this in another lesson!