Our Upcoming Summits and Workshops




 2 days workshop on Pricing & Management of Credit Risk, 2015, Mumbai, 21st-22nd December, 2015


Half day workshop on SEBI (LODR) Regulations, 2015, Bangalore, 27th November, 2015


India De-stressed Debt Summit, 2015 |Mumbai- TBA


2 Days workshop on Islamic Finance| Mumbai 


2 days workshop on Leasing & Asset Backed Lending, Delhi, 5th -6th November, 2015



Our Latest Publications



Guide to Structured Finance 

by Vinod Kothari




Guide to Independent Directors

by Vinod Kothari & Sikha Bansal


The Companies Act, 2013 with rules and forms

Key Highlights and Quick Reference Tables prepared by Vinod Kothari 


Understanding Companies Act, 2013

by Vinod Kothari and Team


Taxation of Lease Transactions in India 

by Vinod Kothari & Sikha Bansal


Guide to Housing Finance 

 - A Comprehensive Guide to Mortgage Lending

by Vinod Kothari


What is a non-banking financial company?

The financial sector in any economy consists of several intermediaries. Apart from banking entities, there are investment intermediaries (such as mutual funds, hedge funds, pension funds, and so on), risk transfer entities (such as insurance companies), information and analysis providers (such as rating agencies, financial advisers, etc), investment banks, portfolio managers and so on.

All such entities that offer financial services other than banking, may be broadly called non-banking financial institutions. What is banking? Banking is commonly understood to mean taking of deposits withdrawable on demand or notice - that is, banks can hold people's deposits and promise to pay them on demand. There are variety of other entities that may accept deposits - hence, acceptance  of deposits is not the essence of banking.

In India, the term "non-banking financial companies" acquires a new meaning, and a huge significance. The meaning of the term is such entities which are not banks, and yet carry lending activities almost at par with banks. They may also accept deposits - however, these deposits are term deposits and not call deposits.

The significance of non-banking financial companies in India lies in the massive capabilities of NBFCs - short of acceptance of call deposits and remittance function, NBFCs can virtually do everything that a bank can. Compared to this disability, the ease of entry and lightness of regulation applicable to NBFCs makes it a tremendous focus of interest, particularly for foreign investors wanting to enter India's financial sector.

For instance, it is possible to hold 100% foreign ownership of NBFCs, while in case of banks, there are serious caps.

It is possible to either start an NBFC or buy one of the 17000-odd companies many of which are formed for sale. On the other hand, getting a banking license requires a real penance.

There are numerous articles and presentations on this site as well as Staff Publications Page pertaining to NBFCs.

Our dedicated pages

Other Resources