NBFC full form is Non Banking Financial Companies. In simple words NBFC are financial institutions which offer banking services without having a banking license. NBFC are registered under the Companies Act, 1956 and do the business as Non Banking Financial Company defined under Section 45-IA of the RBI ACT 1934.
NBFCs Business:
In India many financial institution there. NBFC are not a banks but works like a bank. NBFC deposit money from the customers and give loans. NBFC are doing Insurance, Chit fund, Merchant Banking, Stock broking and Investment business.
As per records of Ministry of Corporate Affairs In India there are more than 36000 plus NBFC companies registered.
Muthoot Fincorp.
Manappuram Finance Limited.
Tata Capital.
LIC Housing Finance.
India Bulls.
India Infoline Finance Limited.
Ujjivan Financial Services Limited.
Reliance Capital Limited.
Bajaj Finance.
Dewan Housing Fiance Limited.
Types of NBFCs in India:
There are two types of NBFs there in India.
Deposit Accepting NBFCs.
Non Deposit Accepting NBFCs.
NBFCs Companies:
Asset Finance Company:
These companies provide services related to properties.
Housing Finance Company:
These companies provide services related to housing loans.
Investment Company:
These companies provide services related to Investments.
Loan Company:
These companies provide financial assistance to public in the form of loan and advances.
NBFCs other details:
A company whose main business is industrial activity, agriculture, purchase, sale, construction of immovable property is not a NBFC.
DICGC coverage for deposits is not available to the NBFCs.
NBFCs can not accept the demand deposit from the public.
NBFCs not allow withdrawals or deposit cash when it’s necessary.
NBFCs deposits are not saving deposits they are long term deposits.
Conclusion:
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