Q What is a non-banking financial company NBFC

Posted on 15-04-2016        By ADMIN

What is a non-banking financial company NBFC

A non-banking financial company (NBFC) is a company registered under theCompanies Act, 

NBFC are engaged in the business of loans and advances, acquisition ofshares/stock/bonds/debentures/securities issued by government or localauthority or other securities of like marketable nature, leasing,hire-purchase, insurance business, chit business, but does not include anyinstitution whose principal business is that of agriculture activity,industrial activity, sale/purchase/construction of immovable property.

A non-banking institution which is a company and which has its principalbusiness of receiving deposits under any scheme or arrangement or any othermanner, or lending in any manner is also a non-banking financial company(residuary non-banking company).

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