The RBI recently published new criteria for NBFC funding through External Commercial Borrowings (ECB). The new rules are a win for the NBFC sector, which is struggling to raise capital from the domestic market. New parameters for NBFC funding through external commercial borrowings were recently released by the RBI (ECB). The new guidelines are a triumph [...]
Introduction Small finance banks are a type of bank that helps those sections which do not get support from other banks. Small finance banks provide basic bank facilities to the economical sections which are not supported by the other banks. It helps to provide financial aid to the small business units, small or marginal farmers, micro or [...]
Overview of NBFC A Non-Banking Financial Company (NBFC) is a financial institution. It carries on businesses under the Companies Act 2013 like:- receiving personal loans and advances, Acquisition of stocks or shares, Leasing, Hire-purchase, Insurance business, and chit fund business. In India, the authority to control the NBFC registration is with the Reserve Bank Of India(RBI). Non-Banking Financial [...]
Non-Banking Financial Company Vs Micro Finance Institution In India, Banks have some certain limitations because they are not able to open branches in remote and inaccessible places as India is geographically large country. Due to this, NBFCs and MFIs are being operated in rural parts of the country to meet banking requirements of the people. Although, [...]
Introduction Now it has been declared that Indian Accounting Standard(Ind AS) is mandatory for certain Non-banking Financial companies effective 1 April 2018 with the first quarter reporting out for some. But the transition to Ind AS for NBFCs might get postponed. This accounting change is expected to have a profound impact on the business of NBFCs. It [...]
FAQs on NBFC NBFCs or Non-Banking Financial Companies are a major contributor to the 12.5% GDP rise in India. In addition to this, NBFCs have a projected growth of a staggering 19-21% in the financial year 2018-19. So it's pretty clear that NBFCs are a major part of India's economy. So what are NBFCs? How do [...]
