INTRODUCTION

A savings and loan association (or S&L), also known as a thrift, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans. The terms "S&L" or "thrift" are mainly used in the United States; similar institutions in the United Kingdom, Ireland and some Commonwealth countries include building societies and trustee savings banks. They are often mutually held (often called mutual savings banks meaning that the depositors and borrowers are members with voting rights, and have the ability to direct the financial and managerial goals of the organization, similar to the policyholders of a mutual insurance company. It is possible for an S&L to be a joint stock companyand even publicly traded. However, this means that it is no longer truly an association, and depositors and borrowers no longer have managerial control. By law, thrifts must have at least 65 percent of their lending in mortgages and other consumer loans ² making them particularly vulnerable to housing downturns such as the deep one the U.S. has experienced since 2007.

The objective of savings and loan associations
The most important purpose of these institutions is to make mortgage loans on residential property. These organizations, which also are known as savings associations, building and loan associations, cooperative banks (in New England), and homestead associations (in Louisiana), are the primary source of financial assistance to a large segment of American homeowners. As home-financing institutions, they give primary attention to single-family residences and are equipped to make loans in this area.

which do not hold licences as full-fledged Authorised Dealers. 2. 3. BIBLIOGRAPHY . but which fulfil the eligibility criteria. purchase. repair. They cannot maintain Foreign Currency (Non-Resident) Accounts (Bank) Scheme.Some of the most important objective of a savings and loan association are: 1. It is state or federally chartered. prescribed by RBI. It is generally a locally owned and privately managed home financing institution. Scheduled Commercial Banks and Urban Co-operative Banks. It makes loans for the construction. Besides authorised dealers the RBI has permitted certain State Co-operative Banks. out of funds remitted from abroad in foreign exchange . Indian national and persons of Indian origin resident abroad can open bank accounts in India freely.or out of funds legitimately due to them in India. It receives individuals' savings and uses these funds to make longterm amortized loans to home purchasers. to maintain Non-resident Ordinary Rupee Accounts (NRO Accounts) and Non-resident External Accounts in rupees. Section 6 of FERA requires the bank to obtain a licence from Reserve Bank of India (RBI) to deal in foreign exchange. 4. INTRODUCTION Banks play an important role in all foreign exchange transactions in India. All receipts and payments in foreign exchange are require to be settled in almost all cases through a bank authorised to deal in foreign exchange. and such banks are the "authorised dealers" in foreign exchange. or refinancing of houses. although in some cases the requests of Non-residents will have to be approved by RBI. RBI has granted general permission to "Authorised Dealers" to open such accounts freely.

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