NON BANKING FINANCIAL COMPANY
NBFC registered under the Companies Act 1956 in India . It offers some banking facilities like loan and credit facilities , money market , merger activities but , it cannot accept demand deposits and they do not take part in payment and settlement system (ie, they cannot issue cheques etc)
Requirements for Registration with RBI
1) It should be a company registered under section 3 of companies act 1956
2) It should have minimum net owned fund of ₹ 200 lakh
What are Systemically important NBFC
NBFC whose asset size is ₹ 500 cr or more as per last audited balance sheet are considered as systemically important NBFC . Their health affect the financial stability of the overall economy .
NBFC plays an important role in the Indian economy . They provide services such as personal loans ,housing loans, insurance and loans for purchasing commercial vehicles, machinery and farm equipment etc . NBFC helps to achieve ‘ Financial inclusion’ goals by providing services to the unbanked population in rural , semi-rural areas and they are also important source to offer financial service to MSME Enterprises.