{"id":20042,"date":"2019-06-19T12:16:55","date_gmt":"2019-06-19T06:46:55","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?page_id=20042"},"modified":"2022-09-13T17:49:53","modified_gmt":"2022-09-13T12:19:53","slug":"nbfc-license-norms-checklist","status":"publish","type":"page","link":"https:\/\/enterslice.com\/learning\/whitepapers\/nbfc-license-norms-checklist\/","title":{"rendered":"NBFC Licensing Norms in India"},"content":{"rendered":"

NBFC<\/a> (Non-Banking Financial Company) is engaged in financial activities as defined under section 45-IA of the RBI Act 1934 but does not possess a banking license. A company can offer banking services such as lending of loans, assets mortgage, insurance, hedge funds, etc after NBFC Registration<\/strong><\/a>.<\/p>\n\n\n\n

However, they do not have permission to perform banking\noperations of accepting demand deposits from the public. They also cannot issue\ncheques drawn on it.<\/p>\n\n\n\n

NBFCs are registered as per the rules and regulations prescribed\nunder Companies Act, 2013 and the Reserve Bank of India Act, 1934. They are\nplaying a vital role in executing financial functions in the economy. They help\nto meet the demand that remains unfulfilled by the traditional banking system\nin shorter processing time.<\/p>\n\n\n\n

An NBFC can provide both secured and unsecured loans to the\ntakers based on alternative lending models. The government has been promoting\nNBFC so that the unorganized money lenders and people willing to run financial\nservices can organize their lending operations.<\/p>\n\n\n\n

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NBFC licensing Norms in india<\/h3>\n\n