All about the non-banking financial institutions and IFCI (Industrial Finance Corporation of India)

2.  NBFCs are entities or institutions that provide certain bank-like and financial
services but don’t hold a banking license.
 NBFCs are registered under The Companies Act, 2013.
 These companies are engaged in the business of loans and advances , acquisition
of shares /stocks /bonds /debentures /securities issued by govt. or local authority ,
other marketable securities of a like nature:leasing,hire-purchase,insurance
business.
 But it don’t include any institution whose principal business is that of agricultural
activity, industrial(trading) activity, purchase or sale of any goods (other than
securities) or providing any services and sale,purchase,construction of immovable
property.

3.  The Organised Non-Banking Financial Institutions include:-
* All India Development Financial Institutions
* The State Level Development Financial Institutions
 At present, 4 Important Financial Institutions at the National level ; IFCI ,IDBI
,ICICI ,IIBIL. + 19 State Financial Corporations + 24 State Industrial Development
Investment Corporations.
 These Institutions plays a significant role in the industrial development. Reasons:-
* lack of entrepreneurial talent, * low capital formation, * shyness of capital,
* inadequacy of financial facilities to meet huge requirements of funds for industrial
development.

4.  Establishment : 1st July ,1948
 Act : Industrial Finance Corporation Act, 1948
 Listed on : BSE & NSE
 IFCI (first development bank) was set up in 1st July ,1948 under the Industrial Finance
Corporation Act, 1948 to provide medium and long term financial assistance to large scale
industries all over the country.
 Since 1st July, 1993, this corporation has been converted into a company and it has been
given the status of a limited company with the name IFCI Ltd. under the Indian
Companies Act, 1956.
 It was incorporated with a view to assist financially. It consists of following :-
* manufacture, prevention or processing of goods; * the mining industry:
* the shipping business ; * the hotel industry; * generation or distribution of electricity.

6. 1. Financial Assistance ;
* Granting loans and advances
* Underwriting issue of industrial concerns
* Subscribing directly to the shares and debentures of public limited companies
* Guaranteeing of loans raised by industrial concerns
* Guaranteeing of deferred payments for the purchase of capital goods from
abroad or within India.
* Acting as an agent of the Central Govt. or World Bank.

7. 2. Promotional Activities ;
* Discovers opportunities for new enterprises
* Provide guidance to small and medium entrepreneurs
* Accelerate industrial growth
* Reduce regional, industrial and income disparities.
3. Financial Services ;
* Corporate counselling for financial reconstruction
* Assistance in settlement of terms and conditions with foreign collaborations
* Revival of sick units
* Financing of risky projects