NBFCs
Banking · NBFC · 12 facts
NBFCs: Non-Banking Financial Companies registered under Companies Act
NBFCs regulated by RBI under Chapter IIIB of RBI Act 1934
NBFCs CANNOT accept demand deposits (current/savings account not allowed)
NBFCs are NOT part of the payment and settlement system
NBFC deposits NOT insured by DICGC (unlike bank deposits)
No CRR/SLR mandatory for NBFCs (but RBI may impose norms)
Types: NBFC-ND (non-deposit), NBFC-D (deposit taking), NBFC-MFI, NBFC-Factors
Examples: Bajaj Finance, Muthoot, LIC Housing Finance, HDFC Ltd (before merger)
NBFCs provide loans, insurance, hire purchase, chit fund services
NBFC-P2P: peer-to-peer lending platforms regulated by RBI since 2017
Core Investment Company (CIC-NBFC): invests in group company shares/securities
RBI scale-based regulation for NBFCs: Base, Middle, Upper, Top layers