Tell me something about NBFC and role in indian economy.

Question

Accepted Answer

NBFCs are non-banking financial institutions that play a crucial role in the Indian economy.

NBFCs are financial institutions that provide banking services without holding a banking license.
They offer various financial services like loans, credit facilities, investment advice, and wealth management.
NBFCs cater to the financial needs of individuals, small businesses, and sectors not adequately served by traditional banks.
They contribute to financial inclusion by extending credit to underserved sections of society.
NBFCs play a vital role in channeling funds from savers to borrowers, thereby promoting economic growth.
They complement the banking sector by offering specialized services and innovative financial products.
NBFCs have helped in the development of sectors like microfinance, housing finance, consumer finance, and infrastructure finance.
They contribute to job creation and entrepreneurship by providing financial support to small and medium enterprises.
NBFCs are regulated by the Reserve Bank of India (RBI) and are subject to prudential norms and regulations.
Examples of NBFCs in India include Bajaj Finance, HDFC Ltd, Mahindra & Mahindra Financial Services, and Shriram Transport Finance Company.

Accepted Answer

NBFC (non banking financial companies) play an important role in promoting inclusive growth in the country. By catering to the diverse financial needs of bank excluded customer. In India despite being different from banks, NBFC are bound by the Indian banking industry rules and regulations.

Accepted Answer

Non banking financial companies have not full license for banking services but they play a great role in economics department. Such companies provide long term credit , loan facilities etc.

Accepted Answer

NBFCs have been playing an extremely crucial role in the core development of the country's infrastructure. By offering long-term funds and credit to the Indian trade and commerce industry, these institutions are enabling the funding and growth of large infrastructure projects across the country.

Tell me something about NBFC and role in indian economy.

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