Non Banking financial corporations are registered companies that can engage in businesses such as
a.) Loans and advances
b) Insurance
c) acquisition of shares/bonds/debentures/any marketable security
what NBFCs cannot engage in
a) agricultural activity
b) industrial activity
C) Sale purchase of immovable property
How it is different from a bank is that it does provide feature of demand deposits like the bank does.
A NBFC can either be registered with Sebi or RBI. Dual registration is not required.
NBFCs that are registered with RBI are
a) Asset Financing Companies (AFC)
b) Investment Company (IC)
c) Loan Company (LC)
Mind you that all NBFCs cannot hold deposits and those that can hold have a certificate from RBI. The networth of the NBFC should be greater than the deposits held.
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