A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act 1956 and is engaged in the business of loans, advances, Acquisition of shares/stock/bonds/debentures/securities issued by Government or Local authority or other securities of like marketable nature, leasing, Hire-purchase, Insurance business, chit business.
An NBFC has the principal business of receiving deposits under any scheme or arrangement or any other manner or lending in any manner is also a non-banking financial company.
Role of NBFC
Transport & infrastructure sectors development
Substantial employment generation
Help & increase wealth creation
Broad-based economic development
major trust in semi-urban, rural areas & first-time buyers/users.
To finance economically weaker sections
Objective of NBFCs
Provide Long-Term Credits
Growth of National Income
Generate Employment Opportunities
Movement of Funds
Better Living Standard
Strengthening the Financial Market