Does NBFC Come Under RBI?
Yes. NBFC plays a significant role in financial inclusion by catering to sectors and borrowers not effectively served by traditional banks. The RBI governs NBFCs under the provisions of the Reserve Bank of India Act, 1934, particularly under Chapter III-B.- All NBFCs must register with the RBI and obtain a Certificate of Registration (CoR) to commence operations, except those exempted by the RBI.
- NBFCs must comply with various RBI norms, including capital adequacy requirements, asset classification, and prudential norms. They are required to maintain a minimum Net Owned Fund (NOF) as specified by the RBI.
- NBFCs offer services such as loans, credit facilities, asset financing, hire purchase, leasing, and investments in securities. However, they cannot accept demand deposits or issue cheques.
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
Non-Banking Financial Company or NBFC are entities that provide bank-like financial services but have no banking license and are not regulated. One of my colleagues took a loan from it so I asked does NBFC comes under RBI or not and also whether it is reliable. I believe that banks provide some security but such companies don't so we must have avoided them. During that discussion I got to know that The Department of Non-Banking Supervision (DNBS) takes the responsibility of supervising and regulating the Non-Banking Financial Companies so it can definitely be relied upon. There were many other people who had no idea about it and posed the question: does RBI regulate NBFC or not so I hope you all have got the answer now.
Get your loan easily sanctioned with a low interest rate by availing NoBroker Home Loans
Calculate how much you are to pay monthly with NoBroker EMI calculator
What are the famous NBFCs in India?There are ample number of NBFCs in India but some are way too famous. After getting your answer of Is NBFC regulated by RBI or not, you should also have an idea what are the famous ones. Give me some famous NBFCs that can be approached anytime without a second thought.
Power Finance Corporation Limited
Bajaj Finance Limited
Muthoot Finance Limited
Mahindra & Mahindra Financial Services Limited
Cholamandalam and more.
These are NBFC regulated by RBI
Is NBFC reliable?Everything has its pros and cons but it should be mentioned that NBFCs have been in the market for years and it is more flexible to approach them and avail a loan anytime you want. Their processing of loans is also seamless and better than banks. You are to read its terma=s and conditions and then determine whether you feel safe to avail loan from them or not.
I hope I have answered your question: does NBFC comes under RBI or not.
Read More:
What is NBFC Company?
How to get Pmayuclss Application ID from Banker or NBFC?
What is Micro Finance Company?
Does NBFC Comes Under RBI?
Francis
480 Views
2
2 Year
2022-08-04T09:38:41+00:00 2025-01-02T07:17:22+00:00Comment
Share