Introduction to Non-Banking Financial Companies(NBFCs) Role and Classification

1. Introduction to Non-Banking Financial Companies(NBFCs)
Role and Classification
Group No: 6

2. Introduction to (NBFCs)
What are NBFCs?
Services
Their main competitors
Net owned funds of NBFCs

3. Introduction to (NBFCs)
How do we differentiate between a bank
and a non-bank finance company ?

4. Introduction to (NBFCs)
Bank NBFCs
An institute which
is governed by the
BRA, 1949

An institute which
is not governed by
the BRA, 1949


5. Classification to (NBFCs)
Equipment Leasing Company?
Lessor and Lessee?
2 types of leasing arrangements
are:
i. Operating leasing
ii. Finance leasing

6. Classification to (NBFCs)
Payment is easier
No Risk
Tax concessions

7. Classification to (NBFCs)
Hire-purchase Finance Company ?
Main Features

8. Classification to (NBFCs)
 Housing Finance Company?

9. Classification to (NBFCs)
 Investment Company means?
 2 Types
i. Holding Companies
ii. Other Investment Companies

10. Classification to (NBFCs)
Loan Company?
Little Capital
Imp. Suggestions by
Banking Commission
i. License
ii. Liquidity ratio
iii. Limit on the interest rates

11. Classification to (NBFCs)
 Mutual Benefit Financial Company?
 Registration process
 Provide Loans &
Saving Schemes
1
Rupee

12. Classification to (NBFCs)
 Chit-Fund Company?
 For Whom

13. Classification to (NBFCs)
 Residuary Non-banking Company?
 Collection at the doorsteps
 Adverse features
i. Negative net-worth
ii. Some do not submit periodic returns

14. Role of (NBFCs)

15. Functions to (NBFCs)

16. Commercial bank Vs. NBFCs
 Cheque can be
issued
 Less rate of interest
 Regulated by BRA
and RBI
 Hold a variety of
assets
 Cheque cannot be
issued
 High rate of
interest
 Regulated by
SEBI, Companies
Act, RBI etc.
 Hold one type of
asset