Difference b/w nbfc and financial institution


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Querist : Anonymous

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

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

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Querist : Anonymous

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Querist : Anonymous (Querist)
11 January 2014 Thank You Sir!! But why NBFCs are considered diff. from FIs??

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

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Querist : Anonymous (Querist)
11 January 2014 Thank You Very much Sir!!

11 January 2014 you are welcome friend.


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