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Page 1: 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”

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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.

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­­­­Non-Banking­Financial­Companies­(NBFCs)­play­a­vital­role­in­the­context­of­Indian­Economy.­They­are­indispensible­part­in­the­Indian­financial­system­because­they­supplement­the­activities­of­banks­in­terms­of­deposit­mobilization­and­lending.­They­play­a­very­important­role­by­providing­finance­to­activities­which­are­not­served­by­the­organized­banking­sector.­So,­most­the­committees,­appointed­to­investigate­into­the­activities,­have­recognized­their­role­and­have­recognized­the­need­for­a­well-established­and­healthy­non-banking­financial­sector.­

­­­­­Non-banking­institution­which­is­a­company­and­which­has­its­­­­­principal­business­of­receiving­deposits­under­any­­scheme­­of­­arrangement­­or­­any­­other­­manner,­­or­­lending­­in­­any­­manner­­is­­also­­a­­non-­banking­financial­company.

 

Meaning­of­N.B.F.C.

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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.

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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.

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­The­confined­objectives­of­the­present­study­are:­To­analyze­the­market­of­NBFC‘s­in­India.To­study­the­financials­of­NBFC‘s.To­know­what­the­people­think­about­the­non­banking­financial­sector.To­know­about­the­views­of­people­regarding­various­departments­of­

NBFC’s.To­study­the­current­market­share­of­NBFC’s.Assist­rural­community,­particularly­the­small­farmers,­in­raising­their­

productivity­and­income­levels­through­timely­delivery­of­credit,­advisory­and­ancillary­services.

Establish­and­provide­backward­and­forward­linkages­to­strengthen­agri.­value­added­commodity­chains.

Engage­in­public­-­private­and­wholesale­-­retail­partnership­to­deepen­outreach­and­reduce­operating­cost.

Objective­Of­Study

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DATA COLLECTION-

1)­Primary­data 2)­Secondary­data

PRIMARY DATA

The­primary­data­required­for­this­study­was­collected­by­visiting­the­financial­institute­and­analyzing­the­information­provided­by­them.­

SECONDARY DATA

The­secondary­data­for­the­research­was­collected­from­books­and­internet­websites,­annual­reports­etc.­The­source­of­the­secondary­data­was­NBFC‘s­and­Internet.

  

 

 

Research­Methodology

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Competitive­scenario­in­NBFC.

Determination­of­mobilizing­money­in­society.

Infrastructure­development.

Generating­revenue.

GDP­increase.

Scope­Of­Study

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The­project­is­based­on­secondary­data.

Possibility­of­error­in­data­collection.

Geographical­limitation.

Time­limitation.

Limitation

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NBFCs­are­gaining­momentum­in­last­few­decades­with­wide­variety­of­products­and­services.­NBFCs­collect­public­funds­and­provide­loan­able­funds.­There­has­been­significant­increase­in­such­companies­since­1990s.­They­are­playing­a­vital­role­in­the­development­financial­system­of­our­country.­The­banking­sector­is­financing­only­40­per­cent­to­the­trading­sector­and­rest­is­coming­from­the­NBFC­and­private­money­lenders.­At­the­same­line­50­per­cent­of­the­credit­requirement­of­the­manufacturing­is­provided­by­NBFCs.­65­per­cent­of­the­private­construction­activities­was­also­financed­by­NBFCs.­Now­they­are­also­financing­second­hand­vehicles.­NBFCs­can­play­a­significant­role­in­channelizing­the­remittance­from­abroad­to­states­such­as­Gujarat­and­Kerala.

Conclusion

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THANK YOU