NBFC:
A Non-Banking Financial Company
(NBFC) is a company registered under the Companies Act, 1956 and is engaged
in the business of loans and advances, acquisition of shares/ stock/ bonds/
debentures/ securities issued by Government or local authority or other
securities of like marketable nature, leasing, hire-purchase, insurance
business, chit business but does not include any institution whose principal
business is that of agriculture activity, industrial activity,
sale/purchase/construction of immovable property. A non-banking institution
which is a company and which has its principal business of receiving
deposits under any scheme or arrangement or any other manner, or lending in
any manner is also a non-banking financial company (Residuary non-banking
company).
Source: RBI Website
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