NBFC

Question 1

What is NBFC?

Answer 1

company registered under the Companies Act, 1956.

Question 2

What can be done by NBFCs?

Answer 2

-loans and advances
[LOANS DENE]
-acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature
[SHARE,BONDS MADHE DEAL KARNE]
-leasing, hire-purchase, insurance business, chit business, etc
[INSUARANCE.LEASING]

Question 3

What can not be done by NBFCs?

Answer 3

-agriculture activity
industrial activity
[AGRICULTURE/INDUSTRIAL ACTIVITY]
-purchase or sale of any goods (other than securities)
providing any services and sale/purchase/construction of immovable property
[PURCHASING GOODS / PROVIDING SERVICES / CONSTRUCTING PROPERTY]

Question 4

What are NBFC- MFIs?

Answer 4

NBFC MFI is a non-deposit taking NBFC (other than a company licensed u/s 25 of the Indian Companies Act, 1956) that meets the following conditions:
[NON DEPOSIT TAKING NBFCs]

Minimum Net Owned Funds (NOF) of Rs.5 crore. (For those registered in the North Eastern Region of the country, Rs. 2 crore is required as minimum NOF).
At least 85% of its Total Net Assets are in the nature of “Qualifying Assets.”

Question 5

What are Qualifying Assets?

Answer 5

“Net assets” are total assets excluding cash, bank balances, and money market instruments.

“Qualifying assets” are those assets which have a substantial period of time to be ready for its intended use or sale.
[SALE OR USE KARAYALA VEL ASLELE ASSETS]

Question 6

What are types of NBFCs based on Liabilities?

Answer 6

1. Deposit Accepting NBFCs

2. Non-Deposit Accepting NBFCs

Question 7

What are types of NBFCs based on Activities?

Answer 7

1. Infrastructure Finance company
2. Mortgage guarantee companies
3. investment & credit company
4. NBFC Factors
5. systematically important core investment company
6. NBFC Microfinance company
7. NBFC non operative financial holding company
8. Infrastructure debt fund non banking financial company