Government is expected to propose 100% FDI in 25 more segments of NBFCs including commodity broking and infrastructure debt fund with a view to attract more foreign inflows. The proposal, according to sources, is based on the announcement for allowing FDI in more categories of Non-Banking Financial Company (NBFCs) activities, made by Finance Minister Arun … Read More →
NBFCs are doing functions similar to banks. What is difference between banks & NBFCs ? NBFCs are doing functions akin to that of banks, however there are a few differences: (i) a NBFC cannot accept demand deposits (demand deposits are funds deposited at a depository institution that are payable on demand — immediately or within … Read More →
How does the Society utilize the funds/deposits collected by it? The Society uses the funds in lending to the members and investments as per the Co-operatives society Act/Rules/By-Laws. Society’s lending is in the shape of small loans for business or personal use. Are the Deposits with the Society safe & secured? Government of India has … Read More →
FDI in Non-Banking Finance Companies (NBFC) is allowed up to 100% under the automatic route in only the following activities: Merchant Banking Under Writing Portfolio Management Services Investment Advisory Services Financial Consultancy Stock Broking Asset Management Venture Capital Custodian Services Factoring Credit Rating Agencies Leasing & Finance Housing Finance Forex Broking Credit Card Business Money … Read More →
The Reserve Bank on Thursday asked non- systematically important deposit taking and non-deposit-taking NBFCs, including infra and micro-lenders, to set aside 15% of their aggregate capital towards their holdings in Central and State Governments’ debts as prudential measures. In a circular, the central bank said the new norms will be applicable to all deposit accepting … Read More →
The Reserve Bank has rejected requests from non-banking finance companies (NBFCs) to become an agent to sell pension products of PFRDA. The RBI had received proposals from the NBFCs, wherein they had sought approval from the regulator for undertaking Point of Presence (PoP) services under Pension Fund Regulatory and Development Authority (PFRDA) for National Pension … Read More →
The Reserve Bank of India(RBI) revised guidelines for NBFC factor companies stipulating that there should be board approved limit for underwriting commitments with a view to mitigate credit risk. Besides, the RBI has also raised a threshold for reporting of frauds from Rs 25 lakh to Rs 1 crore for Non-banking Financial Company (NBFC). “Factoring … Read More →
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act that is engaged in the business of loans and advances, receiving deposits (some NBFC’s only), acquisition of stocks or shares, leasing, hire-purchase, insurance business, chit business. Therefore, NBFCs lend and take deposits similar to banks; however there are a few differences a) … Read More →