NON- BANKING FINANCE COMPANIES

The company registered company act 1956

Registration under RBI act, 1934 under
section 45-IA

Provide banking services without meeting
legal definition of bank such as holding a
bank license
Engages in the business of loan and advances
acquisition of shares/
stock/bonds/debenture/ security issued by
government or local authority or other
securities of like marketable nature, leasing,
hire-purchase, insurance business, chit
business but dose not include any institution
whose principal business is that of agriculture
activity, industrial activity,
sale/purchase/construction of immovable
property.
NBFC can not accept DEMAND DEPOSITES .

It is not apart of PAYMENT and SETTLEMENT
system thats why is can not issues cheques
to its customers.

Deposit insurance facility of DICGC is not
available for NBFC depositors.
In section 45-IA RBI act , 1934 NBFC
should be registered with RBI.

But not for all category of NBFCS.

There are certain category of NBFC which are
regulated by other regulators
Hosing finance company are regulated by
national housing bank.
Venture capital fund, stock broking company
are registered with SEBI.
Insurances companies holding a valid
certificate of registration is issued by IRDA.
Nidhi companies registered under section
620-A companies act 1956.
NBFC should have minimum net owned fund
2 crore.

The company is required to submit its
application for registration in the prescribed
format along with necessary document for
bank consideration.
Equipment leasing (EL)

Hire purchase (HP)

Investment companies(IC)

Loan companies (LC)

Asset finance companies (AFC)

Investment companies (IC)

Loan companies (LC)
No, all NBFC not accept public deposits

SO
WHAT ARE THE REQUIRMENT FOR
ACCEPTING?

Let us know..
Companies accepting public deposits are
required to comply with all prudential norms
are
Income recognition, asset classification,
accounting standard, provision for bad &
doubtful dept, capital adequacy, credit/
investment concentration .
An NBFC having NOF of Rs 2oo lack and
above can accept public deposits.
It has to obtain minimum stipulated credit
rating from any one of the approved credit
rating agencies at lest once in a year.
Copy of credit rating should be sent to the
RBI.
NBFC should have acquired a credit rating of
not less then AAA rating or its equivalent in
the previous year.
If the credit rating is either down graded or
up graded, NBFC required to repot to RBI with
in 15days from the date its receives such
information.
the deposits taken by the NBFC are repayable
on demand and the minimum period for
which pd can accepted is not less then 12
month with the maximum period of 60
month.

The CRAR has been fixed 12% &above (rated
NBFCS) & 15% above ( un-rated NBFCS).
Credit & investment concentration norms has
been fixed at 15%/25%.
The total loan & investment have a ceiling of
25%& 40% of the owned fund.
All regulation related to interest rate, period
and ceiling on quantum of borrowing do not
apply.
However to insure the true and the fair
picture of there financial health, those co. are
sub. To prudential norms.
Investment company are exempted from all
the provision of the direction except the
statutory provision for registration & creation
of reserve fund.
AS recognized by the RBI & expert
commits/task force
Development of sector like transport & insurance
substantial employment generation
Help & increase wealth creation
Broad base economic development
Irreplaceable supplement to bank credit in rural
segment
Major thrust on semi-urban, rural area & 1
st
time
buyers/users
To finance economically weaker section
huge contribution to the state exchequer


IS a part of the reliance anil dhirubhai
ambani group.
Reliance capital is one of India's leading &
fastest growing private sector financial
services co. , & rank among the top 3
private sector financial services & banking
co. , in terms of net worth.
Reliance capital has interest in asset
management & mutual fund, life & general
insurance, private equity & proprietary
investment, stock broking & other activities
in financial services.

Reliance capital consolidate total income of
Rs 16 billion & a consolidate net profit of
Rs 602 million for quarter ended December 31,
2011.
Reliance capital consolidate total income of
Rs 15 billion & a consolidate net profit of Rs
334 million for the quarter ended September
31, 2011.
Employees -1100
Reliance capital ltd intended to be a well
respected global player in the international
financial services sector. It is presently in
Singapore, Malaysia, united kingdom & united
Arab emirates.
PFC was set up on 16th July 1986 as a Financial
Institution (FI) dedicated to Power Sector
financing and committed to the integrated
development of the power and associated
sectors. The Corporation was notified as a Public
Financial Institution in 1990 under Companies
Act, 1956. The Corporation is registered as a
Non Banking Financial Company with the Reserve
Bank of India (RBI). RBI, vide its revised
Certificate of Registration no. B-14.00004 dated
July 28, 2010 classified the company as an
Infrastructure Finance Company (NBFC-ND-IFC).

Ultra Mega Power Projects (UMPPs)
Restructured Accelerated Power Development
and Reform Programme (RAPDRP)
Independent Transmission Projects (ITPs)
Distribution Reforms, Upgrades &
Management (DRUM
Delivery through Decentralized Management
(DDM)

To insure successful survival of NBFCS in the
wake of highly competitive environment,
they will have to enter into merger & joint
venture so as to prune down their field of
activities & hive of problematic areas. NBFC
should also explore the possibilities of
expanding into non-traditional fund based &
fee based areas where they have core
expertise.

http://www.rbi.org.in/scripts/FAQView.aspx?Id=71
http://en.wikipedia.org/wiki/Non-
banking_financial_company
http://en.wikipedia.org/wiki/Power_Finance_Corporation
http://www.pfcindia.com/
http://www.reliancecapital.co.in/ourbusiness_ib.html
book-Management of Indian financial institutions
Ramandeep kaur
Roll no- 5290
MBA 1
st
sec (e) 2
nd
sem