Small Finance Bank licence: Objectives, Rules, Key Challenges

By |2019-07-06T10:36:59+00:00June 29th, 2019|Categories: NBFC|Tags: , , , , |

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 [...]

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NBFC Regulation

By |2019-07-06T05:53:14+00:00June 28th, 2019|Categories: NBFC|Tags: , , , , , , , , , , , , , , , , , |

Overview of NBFC 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 Company [...]

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Difference between NBFC and Microfinance Companies

By |2018-10-25T08:02:09+00:00September 18th, 2018|Categories: NBFC|

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, [...]

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Changes in Indian Accounting Standard for NBFCs

By |2018-10-25T08:02:54+00:00September 13th, 2018|Categories: NBFC|

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 [...]

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FAQs on NBFC

By |2018-10-25T08:03:36+00:00September 6th, 2018|Categories: NBFC|Tags: , , |

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 [...]

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Participation of NBFCs in Insurance Business

By |2018-10-25T08:04:26+00:00September 3rd, 2018|Categories: NBFC|Tags: , , |

Introduction The Non-banking financial companies (NBFCs) are very similar to the conventional Banks to the most extent apart from few differences that make them their counterparts. The latest development in the financial markets has made the entrance of NBFC in the insurance sector possible. Guidelines provided by the Reserve bank of India has laid down the entry process and working [...]

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NBFC Compliances and Returns

By |2018-10-25T08:05:08+00:00August 31st, 2018|Categories: NBFC|Tags: , , , , |

Introduction to NBFC Compliances and Returns It's no doubt that NBFCs have changed the landscape of the Financial Services Sector in India. NBFCs have a projected growth of a tremendous 19-21% for the 2018-19 Financial Year. However, ever since the infamous incident with Sahara India Financial Corporation in 2015, the RBI has made stricter regulations for [...]

NBFC Vs Nidhi Company Vs Micro-Finance

By |2019-01-24T10:57:50+00:00August 31st, 2018|Categories: NBFC|Tags: , , , , , |

What is NBFC An NBFC is defined as the business of loans and advances or acquisition of shares, stocks, debentures, bonds as well as securities whether issued by the government or local authority but excluding such institutions whose principal business is related to agricultural activities, industrial activity or purchase or sale of any goods or services. [...]

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Micro Finance Institutions’ (NBFC-MFIs) – Directions

By |2019-01-24T11:24:58+00:00August 30th, 2018|Categories: NBFC|Tags: , , |

Introduction In the second quarter review of monetary policy, a sub-committee was constituted to study issues and concerns in the MFI sector in November 2010. But the committee submitted the report in January 2011. It has been announced under the monetary policy Statement 2011-2012 that the framework recommended by the committee is accepted by the Bank. There [...]

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Prerequisites of NBFC Registration

By |2018-10-25T08:06:51+00:00August 30th, 2018|Categories: NBFC|Tags: , , , , |

Introduction to NBFCs Non-Banking Financial Institutes or NBFCs are one of the major contributors to the 12.5% rise in GDP from the finance sector. NBFC registration procedures have been made very simplistic and easy to perform. Before we delve into the details, however, let's briefly describe what NBFCs are NBFC are legal entities under RBI regulations, [...]

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