A Non-Banking Financial Company is a financial institution that does
not require a full banking license, and that can facilitate financial services
related to the bank.
A Non-Banking Financial Company helps the banks in providing them with
the required infrastructure so that they can provide individuals with the
appropriate resources and the companies who are in deficit. It also poses a
fierce competition in the financial industry. The NBFC Companies in Mumbai keep their services quite flexible so
that they can meet the needs of their clients. They may also specialise in
particular sectors and have an added the added advantage of possessing
information; this ends up enhancing the competition through targeting and
specialising.
The role of the Non-Banking Financial Company
The RBI recognises it, therefore the specific roles of a Non-Banking
Financial Company are:
● To help with the increase of wealth.
● To broaden the base of the economic
development.
● To generate substantial employment.
● To finance the economically weak section.
NBFC companies are all over the country with more than 13000 people
registered with the RBI.
The role of the Non-Banking Financial Company
in the Economic development
NBFC Companies in Mumbai help in the economic the development in many
ways:
● Helps in the mobilisation of the resources
that is it converts the savings into investments.
● Aids in the generation of employment.
● It also aids to increase the capital stock of
a company.
● It provides long-term credit and also
specialised credits.
● Helps in developing the financial markets.
● Helps in attracting grants from foreign
financial institutions.
● It poses to break the vicious circle of
poverty by serving to them as an instrument of the government.
NBFC Companies in Mumbai are companies and have the principal business
of receiving the deposits. Such companies are registered with the RBI with
prior approval from the Government.
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