Non-Banking Financial Company (NBFC) is a company engaged in the business of acquisition of securities, loans, advances, hire purchase, and insurance.
| Type | Description |
|---|
| Asset Finance Company | Finance for fixed assets |
| Investment Company | Investment in securities |
| Loan Company | Lending activities |
| Infrastructure Finance Company | Infrastructure projects |
| Micro Finance Institution | Small loans |
| Housing Finance Company | Home loans |
- Incorporation under Companies Act
- Application to RBI (online)
- NOC from relevant authorities
- RBI inspection
- Certificate of Registration (CoR)
- Minimum Net Owned Funds: ₹2 crore (₹5 crore for certain types)
- RBI Registration mandatory
- Prudential norms
- Exposure norms
- Asset classification
- Quarterly returns
- Annual statutory audit
- Board meetings
- KYC and AML compliance
- NPA recognition and reporting
| Aspect | Bank | NBFC |
|---|
| Acceptance of deposits | Yes | Limited |
| Lending | Yes | Yes |
| Payment services | Yes | No |
| RBI regulation | Yes | Yes |
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