What is Non Banking Financial Company (NBFC)?

If you have a regular deal with a bank you may know about the banks in India, which are offering which products, interest rates, etc. The banking industry of India is growing fast with entry of lots of new private sector banks along with foreign banks entry into the country.

The public sector banks are doing good business offering a wide variety of innovative products. The major products are indeed loans, bank insurance and investment; here you get the name of the BANKS and NBFC in India including Indian and foreign banks.

Besides the major public sector banks in India, the private banks have been also offering good service throughout the country. Foreign banks also have good business in urban India and offer a wide range of products to the customers.

non banking finance company (NBFC) is a company registered under the Companies Act, 1956 and it deals with a wide variety of business like loans and advances, acquisition of shares, stocks, bonds, etc. issued by governments. Its principal business is receiving deposits under any scheme and lending in any manner.

An NBFC Guidelines differs from banks as it cannot accept demand deposits and it is not a part of payment and settlement system. It cannot issue cheque to its customers.

The types of NBFC registration at Reserve Bank of India are equipment leasing company, hire-purchase Company, Loan Company and Investment Company. The new classifications with effect from December 6, 2006 are the Asset Finance Company (AFC), Investment Company (IC) and Loan Company (LC).

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