NON-BANKING FINANCIAL SERVICES (NBFC)
SADHANA & Corporate Compliances providing Non-Banking Financial services in Mumbai. A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act,
1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities
issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase,
insurance business, chit business but does not include any institution whose principal business is that of agriculture
activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and
sale/purchase/construction of immovable property. A non-banking institution which is a company and has principal
business of receiving deposits under any scheme of arrangement in one lump sum or in instalments by way of
contributions or in any other manner, is also a non-banking financial company (Residuary non-banking company). Sadhana & co is one of the best NON-BANKING FINANCIAL COMPANIES (NBFC) Consultant at Andheri, Mumbai
.
Difference between Banks and NBFC’s
- NBFC cannot accept demand deposits;
- NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;
- deposit insurance facility of Deposit Insurance and Credit
Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.
Types of NBFC’s
NBFCs can be categorized into the following:
- Asset Finance Company
- Investment Company
- Loan Company
- Infrastructure Finance Company
- Core Investment Company
- Micro Finance Company
- Mortgage Guarantee Company
- Housing Finance Company
By deposits they hold, NBFCs can be further classified into two categories:
- Deposit accepting NBFCs
- Non-Deposit accepting NBFCs
By size or minimum capital requirement, NBFCs can be further classified into following two categories:
- Systematically Important NBFCs
- Non-Deposit accepting NBFCs
PROCEDURE FOR INCORPORATION OF NBFC:
- Incorporation under Companies Act,2013.
- Obtaining of Certificate of Incorporation
- Opening of Bank Account
- Having minimum net owned funds of Rs.2 crores.
- Application with RBI for registration
- License will be granted by RBI after inspection of application.
