Difference b/w nbfc and financial institution

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Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2014 What is the difference B/W NBFC and Financial institution? whether it is explained by any LAW??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 January 2014 financial institution is larger term which includes NBFC...so every NBFC is a financial institution but every financial institution is not a NBFC..

Financial institution will also include banks, insurance companies etc etc etc

Querist : Anonymous

Querist : Anonymous (Querist)

11 January 2014 Thank You Sir!! But why NBFCs are considered diff. from FIs??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 January 2014 they are different because of the governing laws...for eg insurance companies are governed by laws framed by IRDA...but NBFCs are governed by RBI...so they have a different legal framework to work within...same applies to difference between banks and NBFCs despite both being regulated by RBI!!!

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Querist : Anonymous

Querist : Anonymous (Querist)

11 January 2014 Thank You Very much Sir!!

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 January 2014 you are welcome friend.

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