Nbfc

Table of Contents Introduction3 Definition of NBFCs4 Residuary non-banking company4 Overview of NBFCs5 enrollment of NBFCs7 Deposit7 Public deposit8 Regulation of NBFCs10 Mission10 Amendments to the grant Bank of India (RBI) Act, 193410 Basic Structure of Regulatory and Supervisory fashion model11 Other steps for protection of depositors interest11 Classification of Non-Banking monetary Entity12 Role of NBFCs13 Banks v/s NBFCs14 Top ten NBFCs in India16 References17 Introduction The activities of non-banking fiscal companies (NBFCs) in India countenance undergone qualitative changes over the years through functional specialisation. The role of NBFCs as effective financial intermediaries has been well recognized as they have inherent efficiency to take quicker decisions, assume greater risks, and customize their work and charges more according to the needs of the clients. While these features, as compared to the banks, have contributed to the proliferation of NBFCs, their flexible structures allow them to unbundle services provided by banks and market the components on a competitive basis.

The distinction between banks and non-banks has been gradually acquiring blurred since both the segments of the financial system engage themselves in many similar types of activities. At present, NBFCs in India have run prominent in a wide range of activities exchangeable hire-purchase finance, equipment lease finance, loans, investments, etc. By employing innovative merchandising strategies and devising tailor-made products, NBFCs have also been able to figure up a clientele base among the depositors, mop up public savings and command large resources as reflected in the growth of their deposits from public, dealholders, directors and other companies, and borrowings by issue of non-convertible debentures, etc. Consequently, the share of non-bank deposits in household sector savings in financial assets, increased from 3.1 per cent... If you want to get a full essay, instal it on our website: Orderessay

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