Non-Banking Financial Company
NBFC
Intermediate Level
India
Banking & Finance
2 views
Definition
A company registered under the Companies Act that provides banking services without holding a banking license.
Detailed Explanation
NBFCs can't accept demand deposits but can lend. Types include Asset Finance, Investment, Loan Companies, Microfinance. Regulated by RBI. Examples: Bajaj Finance, HDFC Ltd.
Example
An NBFC provides vehicle loans to customers who may not qualify for bank loans.
Local Context (India)
NBFCs fill the credit gap in India, especially for SMEs and rural areas.
Related Terms
C
Compound Interest
Interest calculated on both the initial principal...
L
Liquidity
The ease with which an asset can be converted into...
R
Reserve Bank of India
India's central banking institution that controls...
U
Unified Payments Interface
A real-time payment system developed by NPCI enabl...
N
National Payments Corporation of India
The umbrella organization for retail payments syst...