NBFC FULL FORM | What is NBFC?

In this post, you guys understand the NBFC full form and also other things that are related to NBFC like definition, Eligibility for registering in RBI, Examples of NBFC, and more.

The NBFC full form is Non-Banking Financial Companies. It refers to financial institutions that offer banking services to companies that do not have a banking license. Such institutions are registered under the Companies Act, 1956. They do business as a non-banking financial institution as defined under section 45-IA of the RBI Act, 1934.

NBFC companies are involved in works like business loans, shares, stocks, a bond issued by the government, insurance business, and more.

A company whose main works is agriculture activities, industrial activities, sales or purchase of construction property, do not come under the NBFC.

The main difference between the NBFC and Banks is we can deposit money or withdraw the money when it needs, but in NBFC, we can deposit money for a long time we cannot withdraw money when it’s needed, NBFC doesn’t provide the facilities to withdraw or deposit the money. The money pays you that act as LIC policy, health insurance, etc.

What are the eligibilities to an NBFC for registering in RBI?

A company willing to start a business of an NBFC as defined under section IA of the RBI Act, 1934. there are some conditions to fulfill.  

  • A company should be registered under section 3 of the Companies Act 1956. 
  •   It should own a net fund of 2 crores. 

Examples of NBFC:

  • Insurance companies that are regulated to IRDA.
  • Stockbroking companies, Merchant banking companies, venture capital funds that are regulated to SEBI. 
  • Housing finance companies that are regulated to the National Housing Bank. 
  • Nidhi companies that are notified under section 620A of the companies Act, 1956, and regulated to the corporate minister. 

FAQs NBFC Full Form:

How many NBFC companies are there in India?

There were 9656 NBFC are registered in RBI.

What are the top 10 NBFC companies in India?

The list which is given below that comes under the top 10. There are a huge number of NBFC companies.
1. Power Finance Corporation Limited. 
2. Shriram Transport Finance Company Limited. 
3. Bajaj Finance Limited. 
4. Mahindra & Mahindra Financial Services Limited. 
5. Muthoot Finance Ltd. 
6. HDB Finance Services.
7. Cholamandalam.
8. TATA Capital Financial Service Ltd.
9. L&T Finance Limited.
10. Aditya Birla Finance Limited. 

What are the types of NBFC?

The categories are done on two boards. 
1. The basis of deposits
2. The basis of their activities

Conclusion of NBFC Full Form:

We hope you guys understood the full form of NBFC and also other concepts related to NBFC. 

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