CS Executive Financial Services: Non-Banking Financial Company



Quick Summary
The financial services sector plays a crucial role in transferring funds between those with surplus and deficit. Within this sector, Non-Banking Financial Companies (NBFCs) are key players, operating under the Companies Act and regulated by the RBI. While similar to banks in lending and investment, NBFCs have distinct limitations, such as not accepting sight deposits or participating in the payment system. The article also details other financial entities like Housing Finance Companies (HFCs), Asset Reconstruction Companies (ARCs), Microfinance Institutions (MFIs), and the newer Payment Banks, outlining their specific roles and regulatory frameworks.

The financial services sector comprises a wide variety of economic services that exist in the world today. Although this term applies to banking, investment and insurance services without exception, it is not limited to this. The financial services industry as a whole is concerned with funds and, more precisely, acts as a bridge in transferring money between those with a surplus and those with a deficit. As a result, it has become a major player managing funds, including credit unions, banks,
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About the Author

CS Tushar Pahade(popularly known as LAWgical Guruji), (B.Com. M.Com. L.L.B.) is renowned faculty for CS, CA, and CMA courses in India. He was former Chairman of the Nagpur Chapter of WIRC of ICSI and practising CS for 10 years. ThroughTushar Pahade Classes, he provides online coaching for CS, CA, and CMA. His un ... Read more

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