NBFC Full Form in Banking, What Does NBFC Stand For?
NBFC full form in Banking is a Non-Banking Financial Company, a registered organization under the 1956s Companies Act. The company is associated with the acquisition of stocks/shares/securities/bonds/debentures or business of advances and loans issued by marketable securities or Government or local authority. In simple words, An NBFC is mainly included in the loan business, the purchase of stocks, shares, the chit fund business, the insurance business, and other activities. In India, an NBFC is regulated and registered by the Reserve Bank of India.
It also provides an exclusive range of services, such as venture capital, hire purchase finance, leasing, bill discounting, factoring, equipment finance, bridge loans, term loans, etc.
Benefits of NBFC
- These companies provide a vast range of products compared to banks.
- They are more flexible when it comes to lending since they have a maximum risk appetite.
- They have a smaller branch network compared to banks, which means they offer more efficient and faster services.
- These companies are not operated as banks, meaning they can offer services and products that banks don’t offer.
- These companies are not bound by the exact reserve needs like banks, allowing them to impart higher refunds on deposits.