Full Form of NBFC : Non-Banking Financial Companies

What is the full form of NBFC?

No:1. The full form of NBFC is the Non-Banking Financial Companies.
No:2. It relates to assets institutions providing financial services without the need for a banking licence or without a bank’s legal definition being fulfilled.
No:3. Such entities are registered under the Companies Act, 1956 and, as specified under Section 45-IA of the RBI Act, 1934, do operation as a non-banking financial institution.
No:4. An NBFC is primarily involve in the business of loans, stocks, equity acquisition, insurance business, government-issued bonds, chit fund business, and much more.
No:5. An organization whose principal business is linked to agriculture, sale, purchase or construction of immovable property, industrial production, sale and so on.
No:6. The key difference among NBFC & the bank in which we can withdraw or deposit cash in a bank when we require it, but NBFC does not allow withdrawals or deposit cash when it is necessary.
No:7. NBFC deposits are not consider as investments, like the amount you invest for your health insurance or LIC policy and so on.
No:8. It is just long-term premiums or deposits.

No.-1. Download 15000 One Liner Question Answers PDF

No.-2. Free Download 25000 MCQ Question Answers PDF

No.-3. Complete Static GK with Video MCQ Quiz PDF Download

No.-4. Download 1800+ Exam Wise Mock Test PDF

No.-5. Exam Wise Complete PDF Notes According Syllabus

No.-6. Last One Year Current Affairs PDF Download

No.-7. Join Our Whatsapp Group

No.-8. Join Our Telegram Group

NBFC’s Requirement for RBI certification:

A corporation register under the Companies Act, 1956 and willing to start a non – banking organization business, as specify in Section 45 IA of the RBI Act, 1934, is need to deal with the applicable conditions :
No:1. Under Section 3 of the Companies Act, 1956, it should be report.
No:2. It should own an Rs . 2 crores minimum net fund. Even so, the criteria for a minimum net-owned fund for specific NBFCs can differ.

Few examples of NBFC

No:1. Housing finance firms regulated by the National Housing Bank (NHB).
No:2. Chit fund firms as described in Section 2 of Section (b) of the Chit Funds Act, 1982, and controlled by the state government
No:3. Stockbroking companies, merchant banking companies, SEBI controlled venture capital finances
No:4. Businesses of Nidhi that are register under section 620A of the Companies Act, 1956, and governed by the Ministry of Corporations.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top