Non-Banking Financial Companies (NBFC)
Non-Banking Financial Companies (NBFC)
are establishments that provide financial services and banking facilities without meeting the legal definition of a Bank.
They are covered under the Banking regulations laid down by the Reserve Bank of India .
and provide banking services like
ЁЯНЕloans,
ЁЯНЕcredit facilities,
ЁЯНЕTFCs,
ЁЯНЕretirement planning,
ЁЯНЕinvesting and
ЁЯНЕstocking in the money market.
Deposit not allowed
However, they are restricted from taking any form of deposits from the general public.
These organizations play a crucial role in the economy,
ЁЯНЕ offering their services in urban as well as rural areas,
ЁЯНЕmostly granting loans allowing for the growth of new ventures.
NBFCs also provide a wide range of monetary advice
like chit-reserves and advances.
Hence it has become a very important part of our nation’s Gross Domestic Product and NBFCs alone count for a 12.5% rise in the Gross Domestic Product of our country.
Most people prefer NBFCs
over banks as they find them safe, efficient, and quick in assisting with financial requirements.
Moreover, there are various loan products available and there is flexibility and transparency in their services.
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