General Knowledge

INTRODUCTION

Non banking financial company isacompanyregistered underthe companies act 1956. theseare financialinstitutionsthatprovidecertaintypesofbankingservices, butdonot holdabanking license. Theaseareofferbankingserviceslikesuchas loans, credit facilities, retairment planing, money marketsandmerger activities.

  • According to the RBI (Amendment Act) 1997, a NBFC is an institution which can be defined     as
  • A financial institution which is a company
  • A non-banking institution which has its principle business as the receiving of deposits

    Ex: mutual funds, insurance, factoring,  Project financing  and  d-mat account.  Mutual funds are controlled by SEBI. Insuraces are controlled by IRDAI