Introduction to Non-Banking Financial Companies(NBFCs) Role and Classification
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Introduction to Non-Banking Financial Companies(NBFCs) Role and Classification Group No: 6
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Introduction to Non-Banking Financial Companies(NBFCs) Role and Classification
Transcript of Introduction to Non-Banking Financial Companies(NBFCs) Role and Classification
Introduction to Non-Banking Financial Companies(NBFCs)Role and Classification
Group No: 6
What are NBFCs?
Services
Their main competitors
Net owned funds of NBFCs
Introduction to (NBFCs)
Introduction to (NBFCs)
How do we differentiate between a bank and a non-bank finance company ?
Introduction to (NBFCs)
Bank NBFCs
An institute which is governed by the BRA, 1949
An institute which is not governed by the BRA, 1949
Classification to (NBFCs)
Equipment Leasing CompanyEquipment Leasing Company?
Lessor and Lessee?
2 types of leasing arrangements are:
i. Operating leasingii. Finance leasing
Classification to (NBFCs)
Benefits of Leasing:
Payment is easier
No Risk
Tax concessions
Classification to (NBFCs)
Hire-purchase Finance Companies
Hire-purchase Finance Company ?
Main Features
Classification to (NBFCs)
Housing Finance Companies
Housing Finance Company?
Classification to (NBFCs)
Investment Companies
Investment Company means?
2 Typesi. Holding Companiesii. Other Investment Companies
Classification to (NBFCs)
Loan CompanyLoan Company?
Little Capital
Imp. Suggestions by Banking Commission
i. Licenseii. Liquidity ratioiii. Limit on the interest rates
Classification to (NBFCs)
Mutual Benefit Financial Company
Mutual Benefit Financial Company?
Registration process
Provide Loans & Saving Schemes
1Rupee
Classification to (NBFCs)
Chit-fund Companies
Chit-Fund Company?
For Whom
Classification to (NBFCs)
Residuary Non-banking Companies
Residuary Non-banking Company?
Collection at the doorsteps
Adverse featuresi. Negative net-worthii. Some do not submit periodic returns
Role of (NBFCs)
Promotes Utilisation of Savings
Provides easy, timely and unusual credit
Financial Supermarket
Accept Deposits in Various Forms
Functions to (NBFCs)
Receiving Benefits
Lending Money
Commercial bank Vs. NBFCs
Cheque can be issued
Less rate of interest
Regulated by BRA and RBI
Hold a variety of assets
Cheque cannot be issued
High rate of interest
Regulated by SEBI, Companies Act, RBI etc.
Hold one type of asset
