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NBFCs - Definition
A
Demand of NBFC Types of NBFCs
Documents Overview NBFC vs Bank NBFC Advisory
L A
Process Overview
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RBI on NBFC
C F B T N U O
OVERVIEW OF THIS DOC
A NON-BANKING FINANCE COMPANY
RBI ACT 1934
FUNCTIONS OVERVIEW
NBFC (Non-Banking Financial Company)
An NBFC can provide both secured and
is engaged in financial activities as
unsecured loans to the takers based on
defined under section 45-IA of the RBI
alternative lending models. The
Act 1934
government has been promoting NBFC so that the unorganised money lenders and people willing to run financial services can organise their lending operations.
T
Y N
P B
E F
S C
O
F
S
RBI
ASSET FINANCE COMPANY Loans for operating heavy assets such as automobiles, excavators, generators (accounting for 13.7% of the total number of NBFCs)
LOAN COMPANY Operating loan business (36.2% of the total number of NBFCs)
INVESTMENT COMPANY Buying and selling securities (Accounting for 12.6% of the total number of NBFCs)
INFRASTRUCTURE FINANCE COMPANY Provide infrastructure loans (31.5% of the total number of NBFCs)
SYSTEMICALLY IMPORTANT CORE INVESTMENT COMPANY Equity Investment
INFRASTRUCTURE DEBT FUND Provide investment in infrastructure debt funds
MICRO FINANCE INSTITUTION (MICROFINANCE) Microfinance to SMEs (3.0% of the total number of NBFCs)
FACTOR (ACCOUNTS RECEIVABLE) Accounts Receivable financing
NON-OPERATIVE FINANCIAL HOLDING COMPANY Allow sponsor / sponsor groups to set up new banks
MORTGAGE GUARANTEE COMPANY Provide Mortgage Loan
AMOUNT AGGREGATOR Collect, organize and provide customers with financial asset information
P2P Provide P2P lending platform
INDIAN RBI ACT DEFINES NBFC AS 1. Companies registered under the Companies Act;
Companies engaged in the provision of credit facilities such as loans and advance payments, securities and debt, and other securities, leasing, installment, insurance and other businesses.
A non-bank institution is a company registered under the "Company Law" whose main business is to accept deposits under any plan or arrangement in installments in a lump sum, installment or any other manner, which is also referred to in this law Non-bank financial company.
However, according to the RBI Act, the following categories are not part of the NBFC's competence: 1. Any institution whose main business includes agricultural activities; 2. Any institution whose main business includes industrial activities; 3. Any institution whose principal business includes the purchase or sale of any goods (other than securities); 4. Any institution whose principal business includes providing any services and selling / buying / constructing real estate.
FACTORS FOR NBFC DEVELOPMENT
Burden of public
Lack of traditional
Heavy credit
Due to increased
sector
banks in rural areas
demand
consumption
PROCESS OVERVIEW In order to establish any of these types of financial institutions, a registration number must be received from the Reserve Bank of India. To register for NBFC, applicants must submit the required form to the Reserve Bank of India for inspection, along with the required attachments. Once it is confirmed that the requirements of the RBI Act have been complied with, a registration certificate is issued to the agency.
The applicant must be a company The company has a minimum net registered under the latest Company capital of Rs 2 crore Law
The company's CIBIL (Indian Credit Board of directors should have member from finance background or banking experience.
Registration Agency) records no violations
REQUIREMENTS OVERVIEW
For specific
A company
categories of
registered
Should have a
under the
minimum net
Companies
ownership of
Act;
Rs 2 crore;
NBFCs, there is a specific net ownership funding requirement
NBFC IS DIFFERENT FROM BANKS
NOT ACCEPT
NOT A PART OF
CANNOT ISSUE
DEPOSITORS
DEMAND
THE PAYMENT
ITS OWN CHECK
CANNOT ENJOY
DEPOSITS
AND
DEPOSIT
SETTLEMENT
INSURANCE
SYSTEM
NBFC CAN OFFER SERVICES P2P
HIRE-PURCHASE
INSURANCE
CURRENCY
Presentations are
Presentations are
Presentations are
EXCHANGE
communication tools.
communication tools.
communication tools.
Presentations are communication tools.
LOANS AND
ASSETS
ACQUISITION
STOCK, BONDS
CREDIT
FINANCING
OF SHARES
Presentations are
FACILITIES
Presentations are
Presentations are
communication tools.
Presentations are
communication tools.
communication tools.
communication tools.
MEET OUR ADVISERS
MRS MONISHA
MR ABHISHEK
MISS SUMAN JHA
CHAUDHARY
KUMAR
Senior NBFC Advisor
Additional Director - Swarit
Advisory Head - NBFCs
Enterslice
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