{"id":7154,"date":"2020-03-16T16:59:33","date_gmt":"2020-03-16T11:29:33","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=7154"},"modified":"2020-03-16T16:59:33","modified_gmt":"2020-03-16T11:29:33","slug":"%e2%96%ba-non-banking-financial-company-nbfc","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/%e2%96%ba-non-banking-financial-company-nbfc\/","title":{"rendered":"\u25ba NON-BANKING FINANCIAL COMPANY (NBFC)"},"content":{"rendered":"<p><span style=\"color: #0000ff;\"><strong>Relevance: Prelims: economy<\/strong><\/span><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.legalraasta.com\/blog\/wp-content\/uploads\/2018\/08\/NBFC-blog.jpg\" alt=\"Image result for NON-BANKING FINANCIAL COMPANY (NBFC)\" \/><\/p>\n<ul>\n<li>An NBFC is a <span style=\"color: #ff0000;\"><strong>company registered under the Companies Act, 1956 <\/strong><\/span>engaged in the business of loans and advances, 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.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/image.slidesharecdn.com\/ifs-140119080701-phpapp01\/95\/nonbanking-finance-companynbfcs-9-638.jpg?cb=1390119229\" alt=\"Image result for NON-BANKING FINANCIAL COMPANY (NBFC)\" \/><\/p>\n<ul>\n<li>NBFCs lend and make investments and hence their activities are akin to that of banks; however, there are a few differences as given below:<\/li>\n<\/ul>\n<ol>\n<li>NBFC cannot accept demand deposits;<\/li>\n<li>NBFCs do not form part of the payment and settlement system of RBI and cannot issue cheques drawn on itself;<\/li>\n<li>deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.<\/li>\n<\/ol>\n<ul>\n<li>NBFCs play an important role in promoting inclusive growth in the country, by catering to the diverse financial needs of bank excluded customers.<\/li>\n<li>Further, NBFCs often take lead role in providing innovative financial services to Micro, Small, and Medium Enterprises (MSMEs) most suitable to their business requirements.<\/li>\n<li>NBFCs do play a critical role in participating in the development of an economy by providing a fillip to transportation, employment generation, wealth creation, bank credit in rural segments and to support financially weaker sections of the society.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/03\/non-banking-financial-companies-4-638.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-7155\" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/03\/non-banking-financial-companies-4-638.jpg\" alt=\"\" width=\"638\" height=\"479\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/03\/non-banking-financial-companies-4-638.jpg 638w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/03\/non-banking-financial-companies-4-638-150x113.jpg 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/03\/non-banking-financial-companies-4-638-300x225.jpg 300w\" sizes=\"auto, (max-width: 638px) 100vw, 638px\" \/><\/a><\/p>\n<p><span style=\"color: #0000ff;\"><strong>For more such notes, Articles, News &amp; Views Join our Telegram Channel.<\/strong><\/span><\/p>\n<p><a title=\"Telegram Link\" href=\"https:\/\/t.me\/triumphias\" target=\"_blank\"><span style=\"color: #ff0000;\"><strong>https:\/\/t.me\/triumphias<\/strong><\/span><\/a><\/p>\n<p><span style=\"color: #0000ff;\"><strong>Click the link below to see the details about the UPSC \u2013Civils courses offered by Triumph IAS.<\/strong> <\/span><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" title=\"courses available\" href=\"https:\/\/triumphias.com\/pages-all-courses.php\">https:\/\/triumphias.com\/pages-all-courses.php<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relevance: Prelims: economy An NBFC is a company registered under the Companies Act, 1956 engaged in the business of loans<\/p>\n","protected":false},"author":1,"featured_media":6714,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[230,224],"tags":[],"class_list":["post-7154","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-quick-revision-prelims-economy","category-quick-revision-prelims"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=7154"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7154\/revisions"}],"predecessor-version":[{"id":7156,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7154\/revisions\/7156"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/6714"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=7154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=7154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=7154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}