ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

A+| A| A-

Understanding the NBFC Conundrum

Till recently, non-banking financial companies were the poster boys of the financial sector, with loans from the sector growing at phenomenal rates. An examination of what NBFCs are and their activities shows how they are regulated, what the sources of their funds are, and the recipients of the credit issued by them.

Non-banking financial companies (NBFCs) are companies registered under the Companies Act, 1956 and, as per Section 45 (I) of the Reserve Bank of India (RBI) Act, 1934, are

engaged in the business of making loans, advances, acquisition of shares, stock, bonds, debentures, or securities issued by the government or local authority or other securities of marketable nature, leasing, hire-purchase, insurance and chit business.1

Dear reader,

To continue reading, become a subscriber.

Explore our attractive subscription offers.

Click here

Updated On : 8th Apr, 2019


(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top