Non-Banking Financial Companies – NBFCs


What are Non-Banking Financial Companies – NBFCs?


Non-Banking Financial Companies (NBFCs) are financial institutions that works like bank but it is not a bank, it offers various banking services but do not have a banking license. It is registered under the Companies Act, 1956 now Companies Act 2013 of India. It is regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act, 1934Which is engaged in the business of loans and advances, acquisition of shares, stock, bonds etc. 





Some Populars NBFCs companies in India as follows


Bajaj Finance

LIC Housing Finance

Indiabulls

Dewan Housing Finance Ltd. (DHFL)

India Infoline Finance Ltd. (IIFL)

TATA Capital

Fullerton

L&T Finance

Mahindra Finance

Muthoot Fincorp


NBFCs provide financial services, which primarily involve a debt, and apart from this, different NBFC companies have different types of work.



www.myfirstwebs.com



Types of NBFCs Companies


Asset Finance Company

Housing Finance Company

Mortgage Finance Company

Investment Company

Loan Company

Finance Company

Core Investment Company

Micro Finance Company



Some vital features of Non-Banking Financial Companies -NBFCs


Non-Banking Financial Companies (NBFCs) are registered under the Companies Act, 1956 whereas a bank is registered under Banking Regulation Act, 1949.

NBFCs do not accept demand deposits like banks. Not all NBFCs are entitled to Accept public deposits, only some NBFCs which got a Certificate of Registration from the Reserve Bank of India, Are allowed to accept public deposits. 

(i) NBFCs do not have any payment or payment system. 

(ii) A Non-Banking Financial Companies (NBFCs) do not issue any kind of bank cheque.

(iii) Like banks, NBFC does not issue any kind of demand draft (DD).

(iv) NBFCs do not accept demand deposits from small savings.

(v) NBFCs are registered under the Companies Act 1956

(vi) NBFCs also offers banking services such as loans and credit facilities, currency exchange etc. 


No comments:

Post a Comment