Presentation N.B.F.C
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Transcript of Presentation N.B.F.C
Submitted by Project Guide
Dhiraj D. Ghongde Dr.A.M.Sheikh
Vilasrao Deshmukh College Of Engineering & Technology, Mauda,Nagpur.
“Non Banking Financial Corporations.”
“A deep research on it”
DEFINITIONS OF NBFC.
Non-Banking Financial Companyhasbeendefinedas:
(i)Anon-bankinginstitution,whichisacompanyandwhichhasitsprincipalbusinessthereceivingofdepositsunderanyschemeorlendinginanymanner.
(ii)Suchothernon-bankinginstitutions,asthebankmaywiththepreviousapprovalofthecentralgovernmentandbynotificationintheofficialgazette,specify.
NBFCSprovidearangeofservicessuchashirepurchasefinance,equipmentleasefinance,loans,andinvestments.NBFCShaveraisedlargeamountofresourcesthroughdepositsfrompublic,shareholders,directors,andothercompaniesandborrowingbyissueofnon-convertibledebentures,andsoon.
IntroductionofN.B.F.C.
Non-BankingFinancialCompanies(NBFCs)playavitalroleinthecontextofIndianEconomy.TheyareindispensiblepartintheIndianfinancialsystembecausetheysupplementtheactivitiesofbanksintermsofdepositmobilizationandlending.Theyplayaveryimportantrolebyprovidingfinancetoactivitieswhicharenotservedbytheorganizedbankingsector.So,mostthecommittees,appointedtoinvestigateintotheactivities,haverecognizedtheirroleandhaverecognizedtheneedforawell-establishedandhealthynon-bankingfinancialsector.
Non-bankinginstitutionwhichisacompanyandwhichhasitsprincipalbusinessofreceivingdepositsunderanyschemeofarrangementoranyothermanner,orlendinginanymannerisalsoanon-bankingfinancialcompany.
MeaningofN.B.F.C.
The Reserve Bank of India Act, 1934 was amended on 1st
December, 1964 by the Reserve BankAmendmentAct, 1963 to
include provisions relating to non-banking institutions receiving
depositsandfinancialinstitutions.Itwasobservedthattheexisting
legislative and regulatory framework required further refinement
and improvement because of the rising number of defaulting
NBFCs and the need for an efficient and quick system for
Redressed of grievances of individual depositors. Given the need
forcontinuedexistenceandgrowthofNBFCs,theneedtodevelop
a framework of prudential legislations and a supervisory system
wasfeltespeciallytoencouragethegrowthofhealthyNBFCsand
weedouttheinefficientones.
HistoryofN.B.F.C.
TRADITIONAL APPROACH OF CLASSIFICATION Equipment Leasing Co. Hire Purchase Company Loan Company Investment Company
MODERN APPROACH OF CLASSIFICATION Asset Finance Company Loan Company Investment Company
RESIDUARY NBFC
Types of N.B.F.C.
Theconfinedobjectivesofthepresentstudyare:ToanalyzethemarketofNBFC‘sinIndia.TostudythefinancialsofNBFC‘s.Toknowwhatthepeoplethinkaboutthenonbankingfinancialsector.Toknowabouttheviewsofpeopleregardingvariousdepartmentsof
NBFC’s.TostudythecurrentmarketshareofNBFC’s.Assistruralcommunity,particularlythesmallfarmers,inraisingtheir
productivityandincomelevelsthroughtimelydeliveryofcredit,advisoryandancillaryservices.
Establishandprovidebackwardandforwardlinkagestostrengthenagri.valueaddedcommoditychains.
Engageinpublic-privateandwholesale-retailpartnershiptodeepenoutreachandreduceoperatingcost.
ObjectiveOfStudy
DATA COLLECTION-
1)Primarydata 2)Secondarydata
PRIMARY DATA
Theprimarydatarequiredforthisstudywascollectedbyvisitingthefinancialinstituteandanalyzingtheinformationprovidedbythem.
SECONDARY DATA
Thesecondarydatafortheresearchwascollectedfrombooksandinternetwebsites,annualreportsetc.ThesourceofthesecondarydatawasNBFC‘sandInternet.
ResearchMethodology
CompetitivescenarioinNBFC.
Determinationofmobilizingmoneyinsociety.
Infrastructuredevelopment.
Generatingrevenue.
GDPincrease.
ScopeOfStudy
Theprojectisbasedonsecondarydata.
Possibilityoferrorindatacollection.
Geographicallimitation.
Timelimitation.
Limitation
NBFCsaregainingmomentuminlastfewdecadeswithwidevarietyofproductsandservices.NBFCscollectpublicfundsandprovideloanablefunds.Therehasbeensignificantincreaseinsuchcompaniessince1990s.Theyareplayingavitalroleinthedevelopmentfinancialsystemofourcountry.Thebankingsectorisfinancingonly40percenttothetradingsectorandrestiscomingfromtheNBFCandprivatemoneylenders.Atthesameline50percentofthecreditrequirementofthemanufacturingisprovidedbyNBFCs.65percentoftheprivateconstructionactivitieswasalsofinancedbyNBFCs.Nowtheyarealsofinancingsecondhandvehicles.NBFCscanplayasignificantroleinchannelizingtheremittancefromabroadtostatessuchasGujaratandKerala.
Conclusion
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