NBFCs- Non Banking Financial Companies/Institutions
What are NBFCs NBFCs – Non Banking Financial Campanies or Institutions A Non Bnaking Financial Institutions are Financial Instituons that provides banking services but does not have banking license. Some of these institutions are not allowed to take deposits from public. here are some examples of NBFCs in India, Muthoot Finance LTD Bajaj Finance LTD L&T Finance LTD Tata Capital Unlike banks who offer a packaged deal on a set of financial services, NBFCs offer custamised services to fulfill the needs of clients. They can’t accept deposits repayable on demand. They can’t offer higher interest rates higher than ceiling rate prescribe by RBI. RBI does not guarantee the repayment of deposits by NBFCs. Categories of NBFCs 1.Development Finance Institutions 2.Leasing companies. 3.Investment Companies 4.Housing Finance Companies…and some more. History of NBFCs NBFCs started humbly in India in the 1960s as an alternative for savers and investors whose financial needs were n...